ANALYSIS
Palantir: Caught between the promise of technology and the shadow of power
The artificial intelligence giant is capable of driving breakthroughs in security and governance, but its growing global influence raises concerns about the strategic vulnerability it could represent for many countries.
Palantir booth at the World Economic Forum.
Palantir Technologies is a company founded in 2003 in the United States by Peter Thiel, Alex Karp and other entrepreneurs linked to Silicon Valley. The company was born with the goal of converting huge volumes of data into operational decisions, initially for government intelligence and counterterrorism agencies and later expanding to private companies around the world through big data and artificial intelligence (A.I.) analytics platforms.
Its software has become a key enabler for defense, security and intelligence agencies in the U.S. and other allied countries. Palantir operates three key platforms: Gotham, used by security agencies to detect hidden threats and patterns; Foundry, focused on enterprises to unify data and optimize operations; and the Artificial Intelligence Platform (AIP), its most recent bet, which integrates generative A.I. in real environments, from factories to military systems.
Palantir Technologies CEO Alex Karp.
The company holds extensive contracts with the Department of Defense (DOD), intelligence agencies and the Department of Homeland Security (DHS), to which it provides data analytics for defense, security and health initiatives. Highlights include an agreement awarded in July for up to $10 billion with the U.S. Army to provide software and data services over the next decade, as well as a $795 million contract with the Pentagon to expand its Maven Smart System.
The agreement with the military unifies 75 contracts into a single agreement, a move that, according to the institution, will accelerate the delivery and deployment of software, data platforms and artificial intelligence, as well as eliminate costs associated with intermediaries.
Moreover, Palantir maintains active and long-standing contracts with Immigration and Customs Enforcement (ICE), part of the Department of Homeland Security (DHS), to which it provides data analysis and intelligence software. Notable among these tools is the Investigative Case Management (ICM) system, used for case management and investigative operations support.
In April 2025, a significant modification of nearly $30 million to develop ImmigrationOS (Immigration Lifecycle Operating System), an artificial intelligence platform designed to identify, prioritize and track deportations-including self-deportations in near-real time, visa overstay cases and profiles deemed a priority. The prototype was delivered in September 2025 and the contract was extended to 2027.
These contracts have generated controversy due to concerns over privacy, mass surveillance and possible human rights violations in deportation operations conducted by ICE. An open letter* published last May by former employees of the company warns that "Big Tech, including Palantir, is increasingly complicit, normalizing authoritarianism under the guise of a 'revolution' led by oligarchs."
Alex Karp at the World Economic Forum
According to the Palantir CEO, artificial intelligence will replace so many jobs that it will eliminate the need for mass immigration.
"There are will be more than enough jobs for the citizens of your nation, especially those with vocational training," he stated. "I do think these trends really do make it hard to imagine why we should have large-scale immigration unless you have a very specialized skill."
Karp was especially hard on Europe, which he accused of suffering from a "severe and very structural problem" in adopting advanced technologies, while the United States and China, he said, "understand versions of making this work and they're different. ... But they both work and they work at scale."
In that regard, he warned that this lack of reaction in Europe could widen the economic and security gap in the long run.
A strategic partner for allied governments
Alex Karp and Ecuadorian President Daniel Noboa met Wednesday in Davos for a working meeting focused on expanding technological cooperation between the South American country and Palantir.
The conversation focused on strengthening the country's capabilities in security, modernizing customs control and fighting organized crime, areas in which Noboa's government is seeking advanced technological support to face increasingly complex challenges.
In December, the Ministry of Defense (MOD) of the United Kingdom directly awarded Palantir 240 million pounds ($322 million) over a three-year period for "data analytics capabilities supporting critical strategic, tactical and live operational decision making across classifications".
British Prime Minister Keir Starmer met with Alex Karp in Washington last February during a visit organized by Britain’s then ambassador to the U.S., Peter Mandelson.
"The contract, worth three times more than a previous MOD agreement with Palantir signed in 2022, will see the company play a key role in modernizing the U.K.’s armed forces," revealed Politico.
British Prime Minister Keir Starmer and Palantir Technologies CEO Alex Karp.
The MOD has said its partnership with Palantir will help its armed forces "develop the latest digital tools and harness A.I. technology to accelerate decision making, improve targeting and keep the British people safe from evolving threats."
According to Politico, this alliance could pose potential risks of technological dependency at a time of growing trade uncertainty and broader geopolitical tensions between the United States and its traditional European allies.
Palantir also announced in December the three-year renewal of its contract with France's national intelligence agency (DGSI), extending a partnership that has lasted nearly a decade.
"We are very proud to support the DGSI in its crucial work in the service of France and its fight against terrorism. This contract renewal reaffirms Palantir's commitment to serving the interests of France since 2016, and ensuring the security of the People of France," Karp said in a statement.
The risks of technological dependence
In several countries, Palantir has generated controversies linked to privacy, mass surveillance, the police's use of sensitive data and the company's collaboration with security agencies.
The company is the subject of a notable controversy in Germany for the use of its Gotham software, under names such as HessenData, DAR and VeRA, in several regional police forces for data analysis and "predictive policing." Yet, Interior Minister Alexander Dobrindt has not ruled out the acquisition of Palantir for Germany's Federal Bureau of Criminal Investigation (BKA) or the Federal Police for the time being.
Critical organizations have claimed the company has enabled mass surveillance, risks to fundamental rights and dependence on a company subject to the CLOUD Act. In addition, Constanze Kurz, spokesperson for the Chaos Computer Club (CCC), a collective of hackers, computer security experts, activists and technologists, pointed out to DW that the police combine data collected separately and for very different purposes. "For that reason alone, massive automated analysis should not become part of everyday policing. But in addition, the data ends up in an intentionally opaque software system from American company Palantir, which the police become dependent on for years."
In 2023, the Federal Constitutional Court declared parts of the laws regulating these tools unconstitutional. While proponents highlight positive results against organized crime and terrorism, the debate remains highly polarized on privacy and digital sovereignty grounds.
What exactly does Palantir do?
Linda Xia, who was an engineer at Palantir between 2022 and 2024, was one of the 13 people who signed the open letter* published last May, shortly after the new agreement with ICE, warning that the company also risks becoming complicit in what they consider authoritarianism by maintaining its cooperation with the Trump administration.
"It's really hard to explain what Palantir works on or what it does," Xia told Wired. "Even as someone who worked there, it's hard to figure out, how do you give a cohesive explanation?"
Palantir has explained its mission clearly in a series of blog posts with titles such as "Palantir Is Not a Data Company" and "Palantir Is Still Not a Data Company." In an excerpt from the latter, the company explains:
"Palantir makes software which organizations use to better manage their data, improve their operations, and serve the people who rely on them.
"We’re proud that essential organizations — including those delivering life-saving assistance, improving health outcomes, manufacturing aircraft fleets, and securing and defending the West — depend on our software platforms to deliver their most vital mission outcomes and further institutional trust within the communities they serve.
"Contrary to some media reports, we are not a surveillance company. We do not sell personal data of any kind. We don’t provide data-mining as a service. Palantir is a software company. Unlike many technology companies, our business model is not based on monetizing personal data. Instead, we develop and license software platforms that enable our customers to integrate and analyze their own data assets to make better decisions. Privacy and data security are fundamental to Palantir and have been built into the software’s architecture from the start.
"We make digital infrastructure that enables organizations to operate in complex data environments. We help our customers — across the public, private, and non-profit sectors — overcome common challenges associated with fractured data landscapes, in which their data is split across different systems and formats.
"Our software provides our customers with the capabilities to integrate those sources into a common platform in which they can build more effective data management, analytics, and operations. Many of our customers also use our platforms to build or deploy AI tools to further enhance their operations in responsible, reliable, and impactful ways.
"Palantir has a deep and longstanding commitment to protecting privacy and civil liberties. We were the first company to establish a dedicated Privacy & Civil Liberties Engineering Team over a decade ago, and we have a longstanding Council of Advisors on Privacy & Civil Liberties comprised of leading experts and advocates. These functions sit at the heart of the company and help us to embody Palantir’s values both through providing rights-protective technologies and fostering a culture of responsibility around their development and use."
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