How Palantir became Trump’s go-to tech partner for AI, defence and immigration

Once a startup struggling for Pentagon contracts, Palantir is now a centrepiece of Trump’s national security and tech strategy. (Courtesy: Reuters file photo)

In early 2023, Palantir CEO Alex Karp claimed the company was developing a revolutionary AI product—one that hadn’t yet been built. Internally, engineers were surprised. But they acted fast, creating the tool that helped put Palantir on the map in the artificial intelligence race. This bold gamble set the tone for Palantir’s transformation into a critical US government partner and one of the most polarizing tech firms in the S&P 500, the Wall Street Journal reported.

From Silicon Valley outsider to Washington insider

Palantir’s Q2 2025 results show over $1 billion in revenue, with government contracts up 53%. Its stock, already up 600% over the past year, surged another 8%. But as its fortunes have soared, so has criticism. Karp has brushed off concerns from former employees and the media, accusing them of ignorance and bias. His rhetoric increasingly mirrors President Trump’s combative style—targeting critics while rallying individual investors.

Aligning with Trump’s ‘America First’ playbook

Once a startup struggling for Pentagon contracts, Palantir is now a centrepiece of Trump’s national security and tech strategy. It has supplied software for immigration enforcement, shipbuilding, missile defence, and pandemic tracking. Though Karp backed Kamala Harris in 2024, the company has grown closer to the Trump administration, mirroring its agenda and benefiting from expanding defence budgets.

Defence wins and deeper government penetration

Palantir’s government revenues have exploded—from $89 million in 2019 to $322 million in just the first half of 2025. The company now supports AI platform Maven, a $10 billion defence software bundle, and projects with Anduril Industries. Its CTO, Shyam Sankar, was even commissioned in the Army Reserve, adding to the company's nationalistic branding and appeal within the Pentagon.

Controversy over immigration and surveillance contracts

Palantir’s newest project—a pilot app with ICE to aid deportation—has sparked dissent. Thirteen former employees signed an open letter condemning the work as authoritarian. While Palantir claims its software safeguards privacy and prevents misuse, critics say its tools enable state overreach. The backlash highlights ongoing tension between national security work and civil liberties.

Staffers in government, millions spent on lobbying

Palantir’s former executives now hold powerful federal roles, including the government’s chief information officer and a senior post at the State Department. Its lobbying spend has quadrupled since 2019, with nearly $6 million already spent this year. As its Washington footprint expands, Palantir’s influence is drawing comparisons to SpaceX’s dominance in U.S. space launches.

Saudi expansion signals shift in values

Palantir is also growing abroad, especially in Saudi Arabia. It’s working on contracts to support Neom and the national healthcare system—despite having once exited the country over human rights concerns. The move reflects Trump’s Middle East pivot and Palantir’s willingness to align with national goals, even if it departs from earlier public stances on democracy and ethics.

A company unapologetically built for conflict

Karp has never hidden that Palantir is not for everyone. The company prides itself on confronting global crises, from COVID to Ukraine to Gaza. With AI at its core and government contracts driving growth, Palantir is now entrenched in U.S. power. “We are not everyone’s cup of tea,” Karp has said. “Bless you. Don’t work here.”