Palantir Technologies is one of Silicon Valley’s most powerful and controversial companies. Founded by Peter Thiel and led by CEO Alex Karp, Palantir has built a reputation for developing advanced data analytics platforms used by governments and militaries worldwide. However, its rapid rise has been accompanied by mounting criticism over its role in mass surveillance, military applications, and an inflated stock valuation that many argue doesn’t reflect its actual performance.
Surveillance and Civil Liberties Erosion
“It was a mistake to casually proclaim the equality of all culture and cultural values.”
– Alex Karp, CEO of Palantir
Palantir’s core technology enables the integration and analysis of vast datasets, making it a favorite among government agencies seeking to streamline intelligence and law enforcement operations. Critics, however, argue that this capability has been weaponized for invasive surveillance. According to The Guardian, Palantir’s AI-powered systems pose a “grave threat to Americans,” capable of tracking citizens on an unprecedented scale. Former employees have also spoken out, accusing the company of enabling aggressive immigration enforcement and predictive policing that disproportionately targets marginalized communities.
Despite Palantir’s repeated denials—claiming it “does not conduct surveillance”—civil liberties groups remain skeptical. As noted by The Conversation, government contracts with Palantir allow agencies to “map the nation’s data,” raising serious concerns about privacy and unchecked state power.
War, AI, and the Blood on the Code
“It’s necessary to scare enemies, and on occasion kill them.”
– Alex Karp, CEO of Palantir
Palantir’s influence extends far beyond domestic surveillance. The company has become a key player in modern warfare, providing AI-driven tools to the U.S. military and allied forces. From Ukraine to the Middle East, Palantir’s platforms are used for battlefield intelligence, logistics, and even targeting operations.
A damning investigation by Business & Human Rights alleges that Palantir’s technology is being used by Israel’s Unit 8200 in Gaza to identify and target individuals, raising grave concerns about potential war crimes. While Palantir insists it does not control how its clients use its software, critics argue that the company cannot absolve itself of moral responsibility when its tools are used to kill.
Alex Karp, the company’s CEO, has shown little remorse. In a controversial statement, he once said, “Doing something small and bad is bad, but it’s less bad than doing something big and bad.” The quote, widely cited by detractors, encapsulates the moral ambiguity surrounding Palantir’s business model.
Karp has also dismissed critics as “parasitic” and claimed that those who oppose Palantir don’t “fully understand what they do.” Such rhetoric has only fueled outrage among privacy advocates and former employees, some of whom have condemned the company’s work with the Trump administration and other controversial regimes.
Overvalued Stock, Unrealistic Hopes
Despite these controversies, Palantir’s stock (PLTR) has soared, reaching a market capitalization of over $420 billion. Yet, many financial analysts and investors question if this valuation is justified. Wall Street has repeatedly warned that Palantir trades at sky-high multiples—some reports cite a stock price-to-sales ratio exceeding 100x—a dozen times above a healthy ratio.
CNBC reported that Palantir suffered its worst monthly performance in years as investors dumped “AI plays” amid valuation fears. Forbes noted that the stock’s recent declines reflect renewed skepticism about whether Palantir can deliver on its promises. Morningstar has rated Palantir’s stock as overvalued, while billionaire investors have issued stark warnings about the risks of betting on such an ambitious but unproven valuation.
Source: Indian Times, Fortune, The Guardian, CNBC
