Palantir Technologies is one of the most discussed yet least understood companies in the technology world. For years, it has been surrounded by secrecy, shaped by its origins in national security, and defined by its partnerships with both governments and major corporations. While it began as a company designed to support the United States in counter-terrorism efforts, it has since grown into a global player providing software across a wide range of industries. Its story is not only about technology but also about politics, ethics, and the power of data. To understand why Palantir matters today, it is important to look at how it started, how it rose to prominence, what it actually does, and why it has become a name people should know.
Palantir was founded in 2003 by Peter Thiel, co-founder of PayPal, along with Alex Karp, Joe Lonsdale, and Stephen Cohen. The motivation came after the September 11 terrorist attacks, which revealed gaps in the United States’ intelligence capabilities. Thiel and his colleagues believed that advanced technology could help the government detect threats without compromising civil liberties. They drew inspiration from fraud detection systems built at PayPal and hoped to adapt those tools for national security. With funding from Thiel and early investment from In-Q-Tel, the CIA’s venture arm, Palantir gained entry into the world of defense and intelligence. This partnership would shape the company’s identity for years to come.
During the wars in Iraq and Afghanistan, Palantir’s software began to see real-world use. Soldiers and intelligence officers relied on it to track insurgent activity, avoid roadside bombs, and plan safer operations. Co-founder Joe Lonsdale later said that Palantir had helped prevent attacks on American forces and neutralise dangerous groups. By providing tools that allowed data from multiple sources to be brought together and analysed, Palantir offered something the government’s own systems could not. In these early years, it gained a reputation as a company that could make sense of complex and urgent data.
The company’s influence was not limited to the battlefield. By 2009, it had begun to move into the commercial sector. One of its first corporate clients was JPMorgan Chase, which used Palantir’s tools to detect financial fraud. This shift marked an important turning point, as Palantir began building a business beyond its government contracts. However, even with these successes, the company did not reach profitability in its early years. That came later, after Palantir went public on the New York Stock Exchange in 2020 through a direct listing, which allowed existing shareholders to sell their stock directly to new investors. Going public exposed Palantir’s revenue model, heavily weighted toward long-term government contracts, and signalled its ambition to become a major force in both government and commercial markets.
At the centre of Palantir’s business are its software platforms. The most well-known are Gotham and Foundry. Gotham is primarily used by governments, defence agencies, and intelligence organisations. It allows officials to analyse data in real time and make better-informed decisions. For example, it can pull together satellite images, movement data, and threat assessments to predict potential enemy actions. In one demonstration, the software showed how U.S. intelligence could respond to a hypothetical Chinese blockade of Taiwan by combining naval data, satellite feeds, and risk assessments into possible response strategies.
Foundry, by contrast, is aimed at commercial clients. It takes a company’s existing data from different systems and integrates it into a single operational picture. A feature known as Palantir Ontology creates a digital twin of the organisation, connecting digital records to real-world assets such as factories, machines, and products. This makes it possible to simulate production changes, improve efficiency, and reduce errors. Airbus, for example, used Foundry to merge hundreds of data sets and speed up the production of its A350 jet. Formula One team Ferrari has also used the software to analyse car performance and guide split-second decisions during races.
Beyond Gotham and Foundry, Palantir has built other products. Apollo is a system that allows software to be deployed and updated across different environments, whether in the cloud, on local servers, or on the edge of a network. More recently, Palantir introduced its Artificial Intelligence Platform (AIP), which helps organisations integrate advanced AI models into sensitive environments while keeping them secure and accountable. With AIP, governments and companies can build custom applications or use AI agents to automate processes.
Palantir’s growth has been fuelled by major contracts. In 2024, the U.S. Army awarded the company $178 million to develop TITAN, an AI-powered battlefield system capable of fusing data from sensors to provide real-time intelligence. In 2025, the Trump administration renewed interest in expanding Palantir’s role in immigration enforcement, reviving contracts that had been scaled back earlier. These wins add to the billions of dollars Palantir has earned from U.S. government agencies such as the Department of Defense, the Department of Homeland Security, the CIA, and Immigration and Customs Enforcement.
At the same time, Palantir has faced growing criticism. Privacy advocates argue that its software, by bringing together vast amounts of data, risks creating a government surveillance tool. Its work with Immigration and Customs Enforcement has drawn protests, with critics pointing to its role in family separations and workplace raids. Police departments in New Orleans and Los Angeles used Palantir’s software to predict crime and identify suspects, raising concerns about racial bias and lack of transparency. The company insists that it does not collect or sell personal data and that it operates within the law, but the debate over its role in society continues.
Part of Palantir’s public image comes from its outspoken CEO, Alex Karp. Unlike many Silicon Valley leaders, Karp is blunt in his defence of the company’s mission. He has argued that Western governments need strong technology to protect themselves and that Palantir is providing tools essential for national security. Karp has criticised what he sees as conformity in Silicon Valley, and in 2020 he moved the company’s headquarters from Palo Alto to Denver, citing cultural differences. While co-founder Peter Thiel is known for his conservative politics and support for Donald Trump, Karp has described himself as a progressive who supported Joe Biden and Kamala Harris in the 2024 election. Despite these differences, both men share a belief in Palantir’s role as a force for the West.
The company’s valuation has soared, with its market worth climbing to levels higher than some of America’s most recognisable corporations. Investors are drawn to its long-term government contracts, its expanding commercial business, and its position at the intersection of data and national security. Yet its success also forces questions about accountability. When a private company provides the backbone for intelligence, law enforcement, healthcare planning, and even immigration enforcement, it raises questions about oversight and public consent.
