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Reading: Peter Thiel faces backlash for backing Palantir — key facts Americans should be aware of
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Peter Thiel faces backlash for backing Palantir — key facts Americans should be aware of

Last updated: June 30, 2025 11:00 pm
Published: 8 months ago
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Peter Thiel’s Palantir Technologies faces scrutiny for its role in a massive data-sharing initiative under the Trump administration. Critics fear the AI-powered platform, combining data from various federal agencies, could be misused for political targeting and surveillance. Concerns span across party lines, with worries about potential abuse of power and threats to democratic institutions.Peter Thiel, billionaire investor and co-founder of Palantir Technologies, is facing growing public and political criticism as his company takes center stage in a sweeping data-sharing effort under US president Donald Trump’s administration, as per a report.

Palantir Technologies’ name comes from the “palantír” which is a seeing stone in JRR Tolkien’s The Lord of the Rings that could reveal selective visions of reality but also deceive, now finds itself in the spotlight over privacy, power, and politics, as per The Guardian report.

A former US secretary of labor, who is now a professor of public policy emeritus at the University of California, Berkeley, Robert Reich wrote in an opinion piece in The Guardian that even the company has many similarities to the “palantír” as it sells an AI-based platform that allows its users, among them military and law enforcement agencies, to analyze personal data, including social media profiles, personal information, and physical characteristics, and is used to identify and surveil individuals, as per the report.

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Trump chose Palantir to combine data of Americans from all federal government agencies and departments, according to the report. The firm will get data from the Department of Homeland Security, the Department of Defense, the Department of Health and Human Services, the Social Security Administration, the Internal Revenue Service, and the Trump administration also wants access to citizens’ and others’ bank account numbers and medical claims, as reported by The Guardian.

Reich asks in his opinion piece in The Guardian, “Will the Trump regime use an emerging super-database to advance Trump’s political agenda, find and detain immigrants, and punish critics? Will it make it easier for Trump to spy on and target his ever-growing list of enemies and other Americans?”

Meanwhile, earlier this month, 13 ex-Palantir workers signed a letter urging the corporation to stop its work with the Trump administration, as per the report.

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Linda Xia, who worked as a Palantir engineer until last year, pointed out that the problem was not with the company’s technology but with how the Trump administration planned to use it, as she told the New York Times, “Combining all that data, even with the noblest of intentions, significantly increases the risk of misuse,” as quoted in The Guardian report.

Even a few Republicans are concerned, as Representative Warren Davidson, a Republican of Ohio, told Semafor that such work could be “dangerous” and said “When you start combining all those data points on an individual into one database, it really essentially creates a digital ID. And it’s a power that history says will eventually be abused,” as quoted in the report.

While Democrats are worried that the firm is helping make a super-database of Americans’ private information, the lawmakers have asked for answers about huge government contracts the company got, as reported by The Guardian.

According to the report, Palantir’s CEO Alex Karp said on an earnings call earlier this year that the company wants “to disrupt and make the institutions we partner with the very best in the world and, when it’s necessary, to scare enemies and on occasion kill them.”

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Reich wrote in his opinion piece in The Guardian, “The danger inherent in Palantir’s AI-powered super-database on all Americans is connected to the vast wealth and power of those associated with the corporation, and their apparent disdain for democratic institutions.”

What kind of data is being collected?

Potentially everything, from your bank account numbers and social security info to your medical history and social media posts, all pulled from various federal agencies.

Have any Republicans raised concerns?

Yes. Rep. Warren Davidson called the project dangerous and warned that it could lead to the abuse of power over ordinary citizens.

Read more on Economic Times

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