An Unnoticed Intersection of Power and AI, Where Data Is Money and Surveillance Rules
Context
We argue that there is an overlooked intersection between power and AI, where data is money and surveillance is the norm; Palantir Technologies is the discreet leader behind the scenes.
Palantir was founded in 2003 with support from the CIA’s venture arm. Palantir was developed for the post-9/11 world to help governments analyze large amounts of data and identify threats before they materialize. Its software—Gotham (for intelligence agencies) and Foundry (for corporations)—has become a digital backbone for intelligence, military, and global logistics operations. If you’ve never heard of it, that’s precisely how they prefer it. Now, in 2025, Palantir is no longer just working with the military; it’s powering real-time deportation tracking for ICE with a new $30 million platform called ImmigrationOS. This system involves monitoring overstays, “self-deportations,” and establishing a live pipeline across agencies to expedite removals. Under CEO Alex Karp—a mix of philosopher and Silicon Valley expert—the company’s technology is transforming everything from the war in Ukraine to AI-driven battlefield operations, giving troops real-time targeting tools and intelligence dashboards. Behind the scenes? Peter Thiel, co-founder and architect of Palantir’s broad strategy: using technology as a geopolitical weapon. Critics see it as a privacy nightmare. Supporters argue it’s essential for national security in a world where threats evolve at the speed of algorithms. Either way, Palantir’s influence is growing quietly, powerfully, and globally.
We’ll begin a deep analysis of Palantir Technologies. This will cover the company’s inception, mission, financial backing, products and services, target market, global operations, recent developments—especially in AI—and future economic potential. We’ll also include foundational and the most recent sources.
Palantir Technologies: An In-Depth Analysis
Genesis
Palantir Technologies was officially founded in May 2003 by Peter Thiel, co-founder of PayPal, who named the startup after the “seeing stone” from J.R.R. Tolkien’s legendarium. (Palantir Technologies—Wikipedia). The Silmarillion tells us that the name “palantír” means “those that watch from afar.”
Thiel’s initial goal was to create a “mission-oriented company” that could use PayPal’s fraud-detection algorithms to help combat terrorism while protecting civil liberties (Palantir Technologies - Wikipedia). In 2004, Thiel provided early seed funding and assembled a core team. PayPal engineer Nathan Gettings collaborated with Stanford students Joe Lonsdale and Stephen Cohen to develop a prototype. Thiel then recruited his Stanford Law classmate, Alex Karp, to serve as CEO of Palantir Technologies (Wikipedia). Karp, a doctoral graduate in social theory, brought a “deviant philosopher” perspective to the tech startup (Palantir Technologies - Wikipedia), contrasting with Thiel’s libertarian approach.
Initially operating out of Palo Alto, California, Palantir faced challenges in attracting investors during its early days. As one executive noted, traditional venture capitalists were skeptical of its unconventional business model—“an inevitable failure” (Palantir Technologies—Wikipedia). The young company largely relied on Thiel’s personal backing and a $2 million investment from In-Q-Tel, the venture arm of the U.S. Central Intelligence Agency (Palantir Technologies—Wikipedia). This CIA backing provided funding and enabled pilot projects with government intelligence analysts, helping Palantir improve its software for real-world espionage and counterterrorism tasks (Palantir Technologies—Wikipedia). By combining human analytical expertise with data mining software—an approach Palantir called “intelligence augmentation”—the company believed it could outperform purely automated artificial intelligence in tracking adaptable adversaries (Palantir Technologies—Wikipedia). This culture of integrating advanced technology with human judgment has been a fundamental part of Palantir since its founding and remains a core value today.
Objectives
From the outset, Palantir’s mission and values have centered on leveraging data to solve society’s hardest problems while upholding civil liberties. “At Palantir, we’re passionate about building software that solves problems. We partner with the most important institutions in the world to transform how they use data and technology,” reads the company’s mission statement (Palantir Technologies Mission, Vision & Values | Comparably). Early on, Palantir explicitly emphasized the balance between security and privacy, convinced that preserving fundamental principles of privacy and civil liberties while using data is essential. Thiel’s oft-cited goal was to prevent terrorism without sacrificing personal freedoms, reflecting a civil libertarian streak in the company’s DNA (Palantir Technologies—Wikipedia).
In practice, Palantir’s primary goal has been to provide robust data integration and analysis platforms that enable organizations to make informed decisions. The company describes its software as the “connective tissue” linking an organization’s data, analytics capabilities, and operational results. Its platforms are designed to ingest and combine large, siloed datasets, identify patterns or anomalies, and enable human analysts to act on those insights in real time. This emphasis on enhancing human decision-making supports Palantir’s strategic aim of becoming the “central operating system for data” in its clients’ operations. The company’s core values include a dedication to solving significant problems, thinking long-term, and using technology ethically. For instance, Palantir has publicly stated that its software should be used in ways that “change the world for the better” (About Palantir), and it created a Privacy and Civil Liberties team to ensure its deployments respect privacy rights. Palantir’s strategic objectives have expanded to include both national security needs (such as supporting military intelligence and combating fraud in government spending (Palantir Technologies - Wikipedia)) and global commercial influence (like improving enterprise efficiency and discovering new medicines). Still, across these areas, the company’s guiding mission stays the same: to enable institutions through data while protecting democratic values in how that data is used.
Financial Investors
Palantir’s growth has been driven by a roster of high-profile investors and significant venture funding over the years. In its early stages, Peter Thiel was the main financial backer, investing about $30 million through his Founders Fund, along with the CIA’s In-Q-Tel, which contributed $2 million in 2005 (Palantir Technologies - Wikipedia). This early government support signaled confidence in Palantir’s technology within the U.S. intelligence community. By the late 2000s, other investors took an interest as Palantir began demonstrating its value to government clients. Notable financiers, including Ken Langone (co-founder of Home Depot), hedge fund billionaire Stanley Druckenmiller, and Tiger Global Management, joined subsequent funding rounds for Palantir Technologies (Wikipedia). These investments allowed Palantir to stay private for more than 15 years, raising funds at increasingly higher valuations. Forbes reported Palantir’s valuation at $9 billion in 2013, following a $450 million round (Palantir Technologies - Wikipedia), which had grown to $20 billion by 2015 with additional funding (Palantir Technologies - Wikipedia). Before going public, Palantir raised approximately $2.75 billion from private investors (Peter Thiel's Palantir launches Japanese joint venture with insurer Sompo | Reuters).
Palantir’s investor base has included strategic supporters and institutional funds. The company counted In-Q-Tel and Tiger Global as repeat investors, and even in its later private stages, it attracted notable investors, including Pegasus Holdings (affiliated with financier Richard Li) and sovereign wealth funds. After Palantir’s direct listing on the NYSE in September 2020 (Palantir Technologies—Wikipedia), its shareholder profile shifted toward major institutional investors. By early 2024, the largest shareholders were passive investment giants such as Vanguard (9.4% ownership) and BlackRock (4.7%), alongside Peter Thiel (7.2%) and strategic partners like Japan’s SOMPO Holdings (3.9%) (Palantir Technologies—Wikipedia). The SOMPO stake reflects a partnership in Japan (discussed below) and exemplifies how Palantir’s financial backing has often aligned with its business development efforts in key markets.
Throughout its fundraising history, Palantir deliberately avoided an early IPO, with CEO Alex Karp arguing in 2013 that public markets’ short-term pressures would make “running a company like ours very difficult” (Palantir Technologies—Wikipedia). The company eventually went public in 2020 through a direct listing, achieving a valuation of over $20 billion (Palantir Technologies—Wikipedia). This move provided liquidity to long-time investors and employees. It provided Palantir with a war chest of over $2 billion in cash to support operations and R&D. The firm’s strong backing by venture capital and later institutional investors highlights confidence in its long-term prospects, but also sets expectations for monetizing its extensive government and commercial relationships.
Products and Services
Palantir’s offerings focus on a suite of software platforms designed for different use cases. The main platforms include Palantir Gotham, Palantir Foundry, Palantir Apollo, and ImmigrationOS—each covering a specific part of the company’s analytics ecosystem. Recently, Palantir released new products, including its Artificial Intelligence Platform (AIP), to maintain its leadership in data analytics and AI integration.
Palantir Gotham
Gotham is Palantir’s leading platform for intelligence analysis and defense operations. First deployed around 2008, Gotham was initially developed in close collaboration with the U.S. intelligence community and military. The platform allows users to integrate and analyze various data sources—from databases to sensor feeds—to find connections and patterns related to national security (Palantir Technologies—Wikipedia). Analysts can map networks of terrorists or criminals, track suspects across datasets, run geospatial analyses, and get alerts for emerging events. Gotham functions as a “big data” brain for intelligence analysts, letting them query and explore relationships in data that were once separate. For example, Gotham has helped U.S. agencies connect databases across the CIA, NSA, FBI, and other organizations, breaking down information silos that once hindered counterterrorism efforts (Palantir Technologies—Wikipedia). It was reportedly used in the raid to locate Osama bin Laden (Peter Thiel's Palantir launches Japanese joint venture with insurer Sompo | Reuters), emphasizing its role in high-profile operations.
Gotham’s user base has been closely associated with government agencies. Its earliest clients included U.S. federal agencies in the intelligence and defense sectors (Palantir Technologies—Wikipedia). Over time, Gotham has also been adopted by militaries and counter-terrorism units worldwide. Notably, U.S. allies have used Gotham in active operations—for example, the Ukrainian military has employed Palantir Gotham for battlefield intelligence during the Russia-Ukraine war (Palantir Technologies—Wikipedia). The platform’s features (such as entity resolution, relationship mapping, and predictive modeling) have even been expanded to domestic security: Gotham has been tested as a predictive policing tool by some law enforcement agencies (Palantir Technologies—Wikipedia). This expansion into policing has led to controversy, with critics arguing that Gotham’s AI-driven crime predictions could reinforce existing biases in policing (Palantir Technologies—Wikipedia). Palantir has responded by emphasizing that Gotham is a decision-support tool and that human analysts are always involved—a view aligned with the company’s “intelligence augmentation” philosophy. Overall, Palantir Gotham remains the company’s primary product for clients seeking to integrate complex data to enhance security or intelligence operations.
Palantir Foundry
As Palantir expanded, it recognized that private companies and civil institutions also faced challenges with scattered data and complex analytics requirements. In response, it introduced Palantir Foundry, a platform designed for commercial and non-defense government sectors. Foundry utilizes Palantir’s data integration engine to enhance data accessibility for business analytics, operational improvements, and informed decision-making across various industries, including finance and healthcare. The platform enables organizations to consolidate data from multiple sources into a unified operational view, develop analytical models (ranging from simple charts to machine learning models), and seamlessly integrate those insights into business workflows.
One of Foundry’s hallmark use cases came in healthcare. During the COVID-19 pandemic, Foundry was utilized in programs such as the U.S. National COVID Cohort Collaborative to aggregate and analyze electronic health records for research (Palantir Technologies—Wikipedia). In the UK, Foundry powered NHS England’s COVID-19 data platform, helping officials allocate ventilators, track hospital capacity, and coordinate the vaccine rollout (Palantir Technologies—Wikipedia). These health applications demonstrated Foundry’s ability to rapidly deliver value in crises, but also sparked concern given Palantir’s background in surveillance. Activist groups in Britain questioned whether a “spy tech” company should handle sensitive health data, launching campaigns in 2021 to push Palantir out of the NHS (Palantir Technologies—Wikipedia). Despite the criticism, Foundry proved effective: in 2022, it was also deployed for the UK’s Homes for Ukraine refugee program to streamline data sharing for resettlement efforts (Palantir Technologies - Wikipedia).
Beyond healthcare, Palantir Foundry has gained widespread adoption in the private sector. Major companies, such as Morgan Stanley (finance), Merck KGaA (pharmaceuticals), Airbus (aerospace), PG&E (energy), and Fiat Chrysler (automotive), have utilized Foundry to integrate data and enhance operations (Palantir Technologies—Wikipedia). For instance, Airbus employed Foundry in its factories to optimize production processes, while Merck utilized it to accelerate drug discovery research. Foundry’s technical features include a flexible data pipeline builder, an ontology layer that maps data to real-world concepts, and user-facing applications for analysis and reporting. It effectively creates a digital twin of an organization, allowing all data to be queried and visualized. By 2023, Foundry had become Palantir’s primary offering for commercial clients, often sold through subscriptions or consulting projects. Its success with enterprise customers is crucial for Palantir’s strategy to expand beyond government revenue.
Palantir Apollo
Running complex software like Gotham and Foundry for various clients, including those on secure government networks, pushed Palantir to innovate in software delivery. This led to the development of Palantir Apollo, the platform that supports Palantir’s software-as-a-service operations. Apollo is a continuous integration and continuous delivery (CI/CD) system that allows Palantir to deploy updates and manage its software across different environments, including classified government clouds and private company servers (Palantir Technologies—Wikipedia). Essentially, Apollo enables Gotham and Foundry to operate like cloud services, even when installed on-premises for a customer.
Launched around 2019, Apollo played a key role in changing Palantir’s business model. It automated the software release process, making sure all clients always have the latest features and security updates. Apollo uses a microservice architecture to coordinate updates across distributed environments (Palantir Technologies—Wikipedia). For example, a U.S. Army server cluster running Gotham on a disconnected battlefield network can still receive periodic module updates or configuration changes that Apollo schedules when a secure connection is available. By solving the challenge of remote software updates, Apollo made Palantir’s offerings more scalable and appealing as a subscription service. Palantir describes Apollo as enabling “SaaS where no SaaS has gone before,” highlighting how it supports deployments even in hardened, no-internet scenarios like submarines or drones (Palantir Technologies—Wikipedia).
Although less visible to end-users, Apollo’s capability is a major technical advantage for Palantir. It enables the company to deliver its software platforms seamlessly in the cloud, on-premises, or in hybrid setups, which is essential for government clients handling sensitive data. In summary, Apollo is the behind-the-scenes engine that keeps Palantir’s Gotham and Foundry operating smoothly worldwide, making software delivery as dependable as the analysis it provides.
Palantir ImmigrationOS
The U.S. Immigration and Customs Enforcement (ICE) has awarded Palantir a $30 million contract to develop the Immigration Lifecycle Operating System (ImmigrationOS). This system is designed to improve ICE’s ability to monitor and manage deportations, especially self-deportations, in near real-time. It focuses on targeting visa overstays, violent criminals, and gang members, in line with the Trump administration’s executive order to speed up deportations.
Work to be Done:
Development of ImmigrationOS: Palantir will build a new platform with three main functions:
• Targeting and Enforcement Prioritization: Streamline selection and apprehension of undocumented immigrants, focusing on violent criminals, gang members (e.g., MS-13, Tren de Aragua), and visa overstays.
• Self-Deportation Tracking: Provide near real-time visibility into self-deportation instances, integrating with enforcement prioritization systems to inform policy and accurately report departure metrics.
• Immigration Lifecycle Process: Enhance efficiency in identifying and removing undocumented immigrants, optimizing deportation logistics.
• Prototype Delivery: Palantir is tasked with delivering a prototype of ImmigrationOS by September 25, 2025.
• Contract Timeline: The contract extends at least through September 2027.
• Data Integration: While specific data sources are undisclosed, ImmigrationOS may leverage Palantir’s existing case management system (in use since 2014), which includes detailed biographic, biometric, and location data (e.g., license-plate reader data, scars, tattoos).
ICE justifies the contract due to its “urgent and compelling” need to address technology limitations in tracking visa overstays and self-deportations, especially at land borders. According to ICE, Palantir’s decade-long experience with ICE and its ability to produce a prototype within six months make it the only viable contractor.
Target Audience
Palantir’s customer base can be broadly categorized into government clients and commercial clients, with the company intentionally expanding from the former to the latter over time. In its first decade, Palantir’s primary audience consisted of government agencies, especially those involved in defense, intelligence, law enforcement, and other security-related fields. The U.S. Intelligence Community (USIC) was an early adopter of Palantir—agencies such as the CIA, FBI, NSA, and military intelligence units utilized Palantir Gotham for counter-terrorism and warzone analytics (Palantir Technologies—Wikipedia). Palantir’s role in the defense sector grew to the point that, by 2013, it served at least 12 different U.S. government organizations, including the CDC (for epidemiological intelligence), the Marine Corps, and the Joint IED Defeat Organization, among others (Palantir Technologies—Wikipedia). Palantir also established a presence with state and local governments (e.g., police departments in Los Angeles and New York for data-driven policing) (Palantir Technologies—Wikipedia), as well as with allied governments overseas for military and border security projects. In summary, government clients, mainly at the federal level, have long made up the majority of Palantir’s revenue.
Starting in the mid-2010s, Palantir shifted its focus to the commercial sector as a growth opportunity, adapting its products for use across various industries. Today, its corporate clients include finance, healthcare, manufacturing, energy, and more. Examples of Palantir’s diverse customers are investment banks (using Foundry for compliance and trading analytics), pharmaceutical companies (for R&D data integration), automotive firms (for supply chain optimization), and utilities (for infrastructure management) (Palantir Technologies - Wikipedia). For example, Palantir has partnered with global banks such as Credit Suisse and JPMorgan, insurance companies like Sompo Holdings in Japan, airplane manufacturer Airbus, automotive brands like Stellantis (formerly Fiat Chrysler), and oil and gas giants like BP. The healthcare sector has also grown in importance, with Palantir supporting health informatics platforms for the NHS and the U.S. National Institutes of Health.
As of 2024, Palantir’s revenues are roughly split between 55% from government clients and 45% from commercial clients (Russell Grain, Inc.), indicating a more balanced mix than in its early years. Within the government sector, U.S. defense and intelligence remain key areas (Palantir is deeply embedded in the U.S. Department of Defense and Homeland Security, including controversial work with ICE on immigration enforcement) (Palantir Technologies—Wikipedia). Internationally, NATO militaries and Western allied governments comprise another essential segment. In the commercial sector, Fortune 500 companies in critical industries are the main focus. Palantir tends to target large organizations with complex data environments and high-stakes problems (rather than small businesses). The company’s sales strategy often involves top-down engagement with C-suite executives seeking to undertake digital transformation initiatives.
It’s important to note that Palantir’s target audience is intentionally selective. Karp has said that Palantir refuses to work with governments considered hostile to the West or with businesses that it believes might misuse the technology. This reflects Palantir’s values-driven approach to clients. In practice, Palantir’s user base is mainly in North America and Europe, with a growing presence in the Asia-Pacific region. By focusing on governments and large enterprises, Palantir has carved out a niche serving organizations that need robust, secure, and customizable data platforms—something that off-the-shelf software often can’t provide. This focus has strengthened Palantir’s reputation as a provider of mission-critical systems for the key institutions it aims to serve (Palantir Technologies Mission, Vision & Values | Comparably).
Global Operations
Although founded in the United States, Palantir has expanded its global presence through its operations and projects. The company’s headquarters moved from Palo Alto to Denver, Colorado, in 2020, but it maintains offices and subsidiaries worldwide to serve its international clients. Palantir’s software is used in more than 40 countries, and the company directly operates in many of them. Major international hubs include London, which manages a significant portion of Palantir’s European business, and Tokyo, home to Palantir’s joint venture in Japan.
In Europe, Palantir has taken part in several major government projects. The United Kingdom, in particular, has become a key area of activity. Palantir has worked with the UK’s Ministry of Defense since at least 2014 on military data systems and has supported the UK Home Office in border security and immigration analytics (Palantir in the UK: From the Ministry of Defense to the NHS—Corporate Watch). In 2020, Palantir was asked to help the NHS (National Health Service) manage COVID-19 data, leading to a deeper involvement with the UK healthcare system. By 2023, Palantir secured a £330 million contract to develop the NHS’s new Federated Data Platform—the largest NHS IT contract to date (Palantir in the UK: From the Ministry of Defense to the NHS—Corporate Watch) (Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract | NHS | The Guardian). This project aims to unify patient and operational data across the NHS to improve care delivery. However, concerns about patient privacy have been raised, as Palantir, a US spy tech company, has won a £330 million NHS contract (Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract | NHS | The Guardian). The project has also generated worries about privacy in the UK. Politicians and civil liberty groups have voiced fears about patient data being handled by a company known for intelligence work (Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract | NHS | The Guardian). There have been protests and even legal challenges against Palantir’s involvement with the NHS (Palantir in the UK: From the Ministry of Defense to the NHS - Corporate Watch) (Palantir in the UK: From the Ministry of Defense to the NHS—Corporate Watch). Despite these controversies, the NHS contract highlights Palantir’s expanding international role beyond defense, as it is now trusted with managing critical civilian infrastructure overseas.
Palantir’s reach extends to other European countries as well—it has supported fraud detection in government spending for countries such as France. It has collaborated with organizations like the World Food Programme on humanitarian logistics. The company’s global projects also include collaboration with NATO allies. For example, Palantir has provided software to NATO command centers and allied militaries for situational awareness. During the ongoing conflict in Ukraine, Palantir has played a behind-the-scenes role: it has supplied the Ukrainian government with tools for battlefield intelligence, reconnaissance, and war crimes documentation (Palantir: the 'all-seeing' tech giant mapping Putin's war crimes) (Palantir: the 'all-seeing' tech giant mapping Putin's war crimes). In 2023, Palantir signed a partnership with Ukraine’s Ministry of Digital Transformation to help rebuild infrastructure and improve digital systems as part of the war effort and post-war recovery (Palantir and Ministry of Digital Transformation of Ukraine strike …). Additionally, Palantir donated its portable “Skykit” packages—rugged laptop and sensor toolkits—to Ukrainian forces, enabling frontline units to analyze drone imagery and other data with Palantir software on the ground (Palantir Technologies—Wikipedia).
In the Asia-Pacific region, Palantir has built a significant presence through strategic partnerships. In Japan, Palantir entered a 50-50 joint venture with Sompo Holdings (one of Japan’s largest insurers) in 2019 (Peter Thiel's Palantir launches Japanese joint venture with insurer Sompo | Reuters). Palantir Japan works with both government and corporate clients in Japan, focusing on applications in healthcare (such as hospital data systems for Sompo) and cybersecurity (Peter Thiel's Palantir launches Japanese joint venture with insurer Sompo | Reuters). This joint venture model has given Palantir an effective entry point into the Japanese market and is notable because Sompo also took an equity stake in Palantir’s U.S. parent. Elsewhere in Asia, Palantir’s clients include South Korean conglomerates (like Hyundai Heavy Industries for shipyard analytics) and government agencies in countries such as Australia and Singapore.
Palantir’s global operations strategy often involves hiring former government or military officials in each region to navigate local bureaucracies. For instance, Palantir’s UK branch is led by Louis Mosley, a figure with family ties to British political circles (Palantir in the UK: From the Ministry of Defense to the NHS - Corporate Watch). In France, Palantir hired former intelligence officers to build trust with state clients. This has helped Palantir secure contracts that a foreign tech company might otherwise struggle to obtain. Conversely, Palantir’s reputation as a U.S.-linked “Silicon Valley intelligence” company sometimes works against it abroad—especially in Germany, where some states have rejected Palantir’s police analytics software on grounds of constitutional privacy, and activists across Europe continue to monitor its expansion into the public sector.
In summary, Palantir operates today as a multinational enterprise with projects spanning defense, intelligence, health, and industry across North America, Europe, and Asia. Its international work—from enabling allied militaries with AI to optimizing hospitals and supply chains—shows the versatility of its technology. Yet, it also ensures that Palantir remains under global scrutiny regarding the ethics and governance of its robust data systems, which are deployed on a large scale.
Recent Developments (Focus on AI)
Over the past few years, Palantir has made significant shifts toward the growing field of artificial intelligence, aiming to position itself at the forefront of the AI revolution in both the business and government sectors. A key part of this strategy is Palantir’s new Artificial Intelligence Platform (AIP), launched in April 2023 (Palantir Technologies—Wikipedia). AIP is designed to incorporate the latest large language models (LLMs)—the same type of AI used by ChatGPT—into Palantir’s existing data platforms (Palantir Technologies). The goal is to allow Palantir’s clients to securely use AI assistants and algorithms with their private data. For example, Palantir demonstrated a military scenario where an operator could ask an AI chatbot for battlefield recommendations, and the system would analyze classified databases and suggest actions (like repositioning units or identifying targets) through natural language (Palantir Technologies—Wikipedia). Importantly, Palantir has emphasized the importance of safety measures in these AI deployments. CEO Alex Karp stated that AIP will not permit an AI to independently carry out lethal actions—human oversight is necessary for any targeting decisions, reducing the risk of unrestrained “killer robots” (Palantir Technologies - Wikipedia).
Beyond defense, Palantir AIP is used across various industries. Early commercial applications include infrastructure planning (using AI to simulate and optimize utility networks), supply chain management, and finance. AIP essentially lets organizations create custom AI agents on top of their Palantir Foundry data (Palantir Technologies—Wikipedia). Users can generate an “AI agent” through a simple interface, define its access to internal data (via Palantir’s ontology layer), and then ask questions or automate tasks. The platform also offers tools to test and validate AI outputs against expected results (Palantir Technologies—Wikipedia), a crucial feature as companies cautiously adopt generative AI. By integrating large language models into its products, Palantir aims to be the preferred provider for “operational AI,” where AI is not just demonstrated but embedded into core business or mission workflows.
Palantir’s focus on AI has been supported by partnerships and product improvements. In 2023, Palantir partnered with Microsoft Azure to offer its software to U.S. government clients on Microsoft’s cloud, utilizing AI services (Palantir Technologies—Wikipedia). It also started hosting an annual AIPCon conference to demonstrate AI use cases with its software (Palantir Technologies—Wikipedia). The company’s messaging now emphasizes that Palantir’s long-standing ontology framework (the way it models clients’ data) gives it a competitive edge in AI. By grounding AI models in a comprehensive context of an organization’s actual data schema, Palantir claims it delivers more “actionable insights and optimized decision-making” from AI (What’s Happening With Palantir Stock? | Morningstar). Independent analysts seem to agree: for example, Morningstar noted that “Palantir is positioned perfectly [for AI] because their ontological framework provides LLMs with the necessary context” for enterprise decisions (What’s Happening With Palantir Stock? | Morningstar).
On the government front, Palantir has rapidly advanced in providing AI-enabled systems for defense and security. In 2022, it secured a $229 million contract to develop the U.S. Army’s TITAN program (Tactical Intelligence Targeting Access Node). TITAN is essentially a portable AI system—a mobile command center that processes satellite imagery and sensor data with AI to aid in targeting and reconnaissance. By early 2025, Palantir had delivered the first prototypes of TITAN to the Army, showcasing AI-driven mapping and targeting in the field. Palantir also introduced MetaConstellation, a system that manages satellite imagery requests with AI models across dozens of satellites (Palantir Technologies). MetaConstellation has been utilized by the U.S. Space Force and Northern Command to quickly obtain insights from satellite data, such as identifying ground changes in real-time. Additionally, the Skykit, mentioned above and deployed in Ukraine, is another recent innovation. This portable AI-ready toolkit brings Palantir’s technology directly to the tactical edge.
These developments underscore Palantir’s efforts to integrate AI across its entire product portfolio. The company’s current narrative is that it has been an “AI company for years,” noting that Gotham and Foundry have long incorporated machine learning, but that the wave of generative AI offers a transformative opportunity. Palantir’s stock price soared in 2023 as investors grew excited about AI, especially after it announced profitability and accelerating revenue growth partly driven by demand for its AI capabilities (Palantir called itself “the default platform for the AI-driven battle space” in one earnings call) (Russell Grain, Inc. -) (Russell Grain, Inc. -). By integrating cutting-edge AI while capitalizing on its proven strengths in data management and security, Palantir is positioning itself as a distinctive player: a company that can bring the power of Silicon Valley AI into sensitive, real-world environments—from military zones to hospitals—where trust, transparency, and control are crucial.
Economic Outlook
Palantir’s future financial and economic outlook combines strong growth potential with notable risks. On the positive side, the company has demonstrated accelerating momentum in both revenue and profitability, indicating that its long-term investments may be yielding positive results. In fiscal year 2023, Palantir achieved its first-ever annual profit ($210 million in net income on $2.2 billion revenue) (Palantir Technologies - Wikipedia), a milestone after years of operating losses. Revenues increased approximately 17% in 2023 and then 29% in 2024, reaching $2.87 billion (Where Will Palantir Technologies Be in 5 Years? | The Motley Fool). Furthermore, by the end of 2024, growth was rapidly accelerating—Q4 2024 revenue was up 36% year-over-year (Russell Grain, Inc.). This re-acceleration is mainly due to soaring demand for Palantir’s AI and data solutions. U.S. government spending on Palantir increased significantly (U.S. government revenue grew 45% y/y in Q4 2024) as agencies expanded their use of Palantir for new AI initiatives (Russell Grain, Inc.). At the same time, Palantir’s U.S. commercial segment thrived—Q4 2024 U.S. commercial revenue jumped 64% y/y (Russell Grain, Inc. -), and the company’s commercial customer count grew 73% that year (Russell Grain, Inc. -). These metrics suggest that Palantir is finally breaking into the broader enterprise market in a meaningful way, driven by the appeal of its AI Platform (AIP) and success stories in industries such as healthcare and finance.
Looking ahead, Palantir’s management has issued optimistic forecasts. They projected over 30% revenue growth for 2025 (to roughly $3.75 billion in revenue) (Russell Grain, Inc. - ), with U.S. commercial sales expected to surpass $1 billion for the first time (Russell Grain, Inc. - ). If these targets are met, Palantir will demonstrate its ability to scale its business rapidly, despite already being a multibillion-dollar company. The total addressable market (TAM) for Palantir’s offerings is potentially extensive, encompassing all major governments and the Global 1000 companies, indicating significant growth potential. Palantir’s strong free cash flow and over $3 billion in cash reserves provide stability and resources to invest in research and development (R&D) or acquisitions, supporting further expansion. Additionally, inclusion in the S&P 500 index in late 2024 has raised Palantir’s profile, likely boosting demand for its stock from index funds (Palantir Technologies—Wikipedia) and potentially reducing its cost of capital.
However, there are significant risks and challenges that could hinder Palantir’s growth. A key risk is Palantir’s ongoing dependence on government contracts, especially in the U.S. defense and intelligence sectors. Government spending tends to be cyclical and influenced by political decisions. For example, in early 2025, reports of potential cuts to the U.S. defense budget caused Palantir’s stock to drop sharply, as investors worried about the impact (Russell Grain, Inc.). About 55% of Palantir’s revenue comes from government clients (Russell Grain, Inc. -), so any halts or delays in government projects—due to budget sequestration, elections, or policy changes—could slow down Palantir’s growth. The company is trying to reduce this risk by rapidly expanding its commercial revenues. However, it will take time for the commercial side to match or overtake the government side on a global level.
Another risk factor is competition and market uncertainty. While Palantir claims it has no direct competitor offering a full-stack platform, it faces competition from various sources, including big tech companies like Microsoft, Amazon, and Google, which provide their data analytics and AI platforms for government and enterprise, as well as smaller niche analytics firms and in-house development efforts. It’s still unclear how large the market for Palantir’s high-end, integrated platform truly is. Morningstar rates Palantir with a “Very High” uncertainty rating, noting that the “biggest uncertainty is the broad potential size of [its] total addressable market” (What’s Happening With Palantir Stock? | Morningstar). In other words, can Palantir continue expanding its customer base, or will it reach saturation among organizations willing to pay roughly $10 million to $100 million annually for data solutions? So far, Palantir has only around 400 customers, which is relatively small compared to its enterprise software peers, creating both opportunity (many organizations remain to be won) and risk (perhaps only a limited number will ever buy such software).
Additionally, Palantir’s valuation and investor expectations create economic pressure. The stock’s massive rally in 2023 (up over 300%) (Russell Grain, Inc.) reflected very high hopes that Palantir would lead the AI software market. At one point in early 2025, Palantir’s forward price-to-earnings ratio surpassed 300x (Russell Grain, Inc.)—a sign of overly optimistic growth and margin assumptions. Such a high valuation could be challenging to justify if growth slows or profitability doesn’t meet expectations. The recent dip in the stock in 2025 underscores its volatility: even minor setbacks or insider stock sales have caused sharp declines (What's Happening With Palantir Stock? | Morningstar) (What’s Happening With Palantir Stock? | Morningstar). Palantir will need to execute almost perfectly to grow into its valuation by quickly increasing sales while holding or improving margins.
Palantir also faces operational and reputational risks. For example, its work with controversial agencies such as immigration enforcement or police surveillance can trigger public backlash, potentially hurting its chances of winning certain contracts (as seen with some NHS physicians protesting Palantir’s NHS bid, or civil rights groups suing to block Palantir’s police contracts in the U.S.). If Palantir is seen as too invasive or encounters a major privacy scandal, it could turn away business, especially on the commercial side, where companies are cautious about their public image. Ensuring data security is another vital risk—a serious breach of Palantir’s systems could be devastating for its trustworthiness, considering the sensitive data of clients it handles.
When considering these factors, many analysts view the situation as cautiously optimistic: Palantir is positioned for strong growth due to its unique focus on AI and increasing customer traction, but it must navigate uncertainties related to its government-heavy revenue mix and demonstrate that it can achieve broader enterprise adoption. If Palantir can continue converting its pipeline—its U.S. commercial contract bookings more than doubled in late 2024, showing strong demand (Russell Grain, Inc.)—and keep innovating in AI, it has the potential to become a lasting leader in the software industry. The company aims to be the leading software provider of the next era—similar to what IBM was for mainframes or Microsoft for PCs—aspiring to lead in the age of AI-driven, data-centric operations. Reaching this goal would generate significant economic value. On the other hand, if external or internal challenges hinder its progress, Palantir might struggle to justify its hype. For now, the economic outlook seems positive, but it will require careful management of the risks involved in its ambitious plans.
References
• Forbes. (2013, August 14). How A “Deviant” Philosopher Built Palantir, a CIA-Funded Data-Mining Juggernaut (Palantir Technologies—Wikipedia). Forbes Magazine. (Profile of Palantir and CEO Alex Karp’s early vision and CIA backing).
• Forbes. (2014, December 11). Palantir Aiming To Raise $400 Million In New Round (Palantir Technologies—Wikipedia). Forbes Tech. (Report by Ryan Mac on Palantir’s late-2014 funding and valuation).
• Reuters. (2019, November 18). Peter Thiel’s Palantir launches Japanese joint venture with insurer Sompo (Peter Thiel’s Palantir launches Japanese joint venture with insurer Sompo | Reuters) (Peter Thiel's Palantir launches Japanese joint venture with insurer Sompo | Reuters). Reuters. (News on Palantir’s expansion in Japan via a Sompo joint venture; includes background on customers and funding).
• Morningstar. (2025, February 28). What’s Happening With Palantir Stock? (What’s Happening With Palantir Stock? | Morningstar ) (What's Happening With Palantir Stock? | Morningstar ). Morningstar Equity Research. (Analysis by Tom Lauricella summarizing Palantir’s 2024 AI-driven rally, growth prospects, and risks as assessed by analyst Mark Giarelli).
• Barchart—Singh, A. (2025, Feb 20). Can Commercial Business Growth Save Palantir Stock? (Russell Grain, Inc - ) (Russell Grain, Inc. - ). Barchart/InsideFutures News. (Article discussing Palantir’s revenue breakdown, growth in Q4 2024, and the importance of commercial expansion amid defense budget risks).
• The Guardian—Campbell, D. (2023, Nov 21). Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract (Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract | NHS | The Guardian) (Patient privacy fears as US spy tech firm Palantir wins £330m NHS contract | NHS | The Guardian). The Guardian. (Covers Palantir’s NHS England contract and the ensuing privacy controversy in the UK).
• Palantir Technologies. (2023). Palantir Artificial Intelligence Platform (AIP) launch press release (Palantir Technologies—Wikipedia) (Palantir Technologies—Wikipedia). Palantir Inc. (Details of the AIP product integrating large language models and its military demonstration scenario).
• Palantir Technologies—Investor Relations. (2025, Feb 13). Palantir Reports Q4 2024 Revenue Growth of 36% (Russell Grain, Inc. - ) (Russell Grain, Inc. - ). Palantir Press Release. (Financial results highlighting accelerating revenue, U.S. commercial growth of 64%, and outlook for 2025).
• Wikipedia. (2025). Palantir Technologies (Palantir Technologies - Wikipedia) (Palantir Technologies - Wikipedia). Wikipedia, The Free Encyclopedia. (General reference for company history, founders, and product descriptions—citing SEC filings and news sources).
• Haskins, Caroline. 2025. “ICE Is Paying Palantir $30 Million to Build ‘ImmigrationOS’ Surveillance Platform.” WIRED, April 18. https://www.wired.com.
Final Remarks
This article and analysis result from a compilation of references and notes from various theses, authors, media, and academics, gathered by a group of friends from “Organizational DNA Labs.” We employed AI platforms, including Gemini, Open-Source ChatGPT, and Grammarly, to expedite research and ensure clarity and logical flow. Our goal in using these tools was to verify information across multiple sources and validate it through academic databases and collaborations with equity firm analysts.
The provided references and notes offer a comprehensive list of our sources. As a researcher and editor, I have meticulously ensured that proper citations and recognition are given to all contributors. The primary content stems from our compilation, analysis, and synthesis of these materials. Our summaries and inferences reflect a commitment to expanding and disseminating knowledge. While high-quality sources inform our perspective, the conclusion represents our current views and understanding of the discussed topics, which are subject to change through continuous learning and literature reviews within this business field.
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