Palantir Technologies Inc. (NASDAQ:PLTR) saw its shares rise 0.8% in premarket trading following a report by The New York Times highlighting the company’s growing role in federal data initiatives under the Trump administration.
The report disclosed that Palantir has been tapped to take a leading role in executing a new executive order aimed at enhancing inter-agency data sharing – a move that could significantly bolster government surveillance capabilities. Since President Trump took office, Palantir has amassed more than $113 million in federal contracts, a figure that excludes a recent $795 million deal with the Department of Defense.
Palantir’s Foundry software, known for its ability to integrate and analyze large volumes of data, is currently in use by at least four U.S. federal agencies. Its adoption may enable the consolidation of disparate agency datasets, aligning with the administration’s push to break down data silos and improve interdepartmental coordination.
However, the company’s expanding government footprint has stirred privacy concerns. Civil liberties groups and privacy advocates fear that such centralized data access could be weaponized against vulnerable communities or political opponents. Critics specifically cite the risk of profiling immigrants or amplifying government overreach.
In response, Palantir has reiterated its stance that it functions solely as a technology provider, emphasizing that the control and application of data rests entirely with its clients. The company maintains that it complies with all laws and regulations, and does not make decisions about how data is used.
The White House has not addressed Palantir’s role directly but emphasized the goal of the executive order is to streamline federal operations and reduce inefficiencies, ultimately benefiting taxpayers.
Despite the ongoing controversy, the market’s reaction has been mildly positive, as investors interpret the increased federal contracts as a sign of sustained revenue growth. Yet, Palantir’s involvement in politically charged data initiatives remains a polarizing issue, raising ongoing ethical and legal questions.