Palantir is benefitting from a continuous exchange of executives and officials moving between the $264bn data intelligence company and high-ranking positions in Washington and Westminster, forming a network of influence that has steered its remarkable growth.
The US group’s stock price has soared due to a surge in sales from government contracts and partnerships with major corporations, with billionaire chair Peter Thiel, a key supporter of Donald Trump, playing a significant role.
Detailed investigations by the Tech Transparency Project (TTP), based on transparency disclosures, job transitions, and public records from the US and UK obtained by the Financial Times, illustrate how Palantir has recruited extensively from government agencies crucial to its business.
This study uncovers Palantir’s vast influence network, which includes close relationships with its largest client, the Department of Defense; a substantial increase in lobbying expenditures in the US over the past decade; and the establishment of a non-profit foundation to sponsor academic research and shape policy dialogues.
Since 2009, Palantir has secured over $2.7bn in US contracts, including more than $1.3bn from the Pentagon, according to federal records. In the UK, Palantir has been awarded contracts worth over £376m, as reported by Tussell, a data provider. Palantir chose not to provide a comment.
According to Bill Hartung, a senior research fellow at the Quincy Institute for Responsible Statecraft, the company’s executives have played significant roles in the Trump administration and transition period, marking a shift where Silicon Valley now actively engages in political lobbying efforts.
Palantir defends its data analysis products, citing their high demand among clients like BP and Hertz due to their superior ability to analyze complex data sets. The company’s technology has contributed to significant achievements such as the elimination of Osama bin Laden, vaccine distribution for Covid-19, and the conviction of financier Bernard Madoff.
Palantir’s CEO, Alex Karp, a vocal Democratic supporter who endorsed Trump’s opponent Kamala Harris, anticipates further gains from the new administration’s focus on budget optimization and increased allocations for national security.
Its stock prices rose by 340% in 2024, emerging as the top performer in the S&P 500. Palantir’s top executives, Thiel and Karp, have collectively earned over $1bn through stock sales since Trump’s election triumph in November.
Karp, boasting about stellar quarterly earnings during an announcement that propelled the stock to new heights, predicted unforeseen success and a potential for groundbreaking achievements, heralding a new era for the company.
The revolving door
While Elon Musk has emerged as Trump’s most vocal supporter in Silicon Valley, Thiel has been a prominent advocate of the president since his initial campaign in 2016.
Thiel played a crucial role in advancing JD Vance’s career in venture capital before becoming his largest campaign donor for the US senate race in 2022.
Following Trump’s re-election, Palantir executives were appointed to key government positions. Jacob Helberg, Karp’s senior adviser, was nominated as under secretary of state for economic growth, energy, and the environment. Gregory Barbaccia, a former Palantir employee, was appointed federal chief information officer, overseeing the nation’s $70bn IT budget.
Palantir has enlisted former lawmakers and government officials from both Republican and Democrat backgrounds. It has recruited individuals like Mike Gallagher, former Republican congressman, and Geof Kahn, a former CIA veteran, to identify contract opportunities and enhance its government relations.
The company has also hired former defense and legal officials from various administrations, fostering a strong connection between Palantir’s operations and government functions. This intertwining has facilitated the company’s credibility and influence within policymaking and budget allocations.
Lonsdale, a venture capitalist and Palantir co-founder, has played a key role in establishing Musk’s Department of Government Efficiency, an advisory group focused on budget cuts. Lonsdale’s involvement extends to financing pro-Trump initiatives, demonstrating a close alliance with the Tesla chief.
Palantir has significantly increased its lobbying efforts, hiring prominent lobbyists and increasing its spending to influence defense policies. The company has also supported the formation of industry alliances to reshape defense contract practices.
Palantir has also established a foundation to engage in defense policy discussions and international affairs, aiming to influence policy dialogues and academic research. The company’s presence in the UK mirrors its US strategies, with recruitment of former officials and engagement with governmental bodies.
By strategically leveraging its ties to government officials and policymakers, Palantir has secured lucrative contracts and established a strong foothold in the data analysis and intelligence market, positioning itself as a significant player in the industry.
