‘Palantir Poses a Grave Threat to Americans,' Says Former U.S. Secretary of Labor

Business Insider

17 hours ago

Former U.S. Secretary of Labor Robert Reich recently wrote in The Guardian that Palantir Technologies (PLTR) is a 'grave threat to Americans.' This is because he believes it's at the center of a dangerous mix that involves artificial intelligence, military power, mass data collection, and growing influence from tech billionaires who don't support democracy. Interestingly, it was reported earlier this year that Palantir was chosen by the Trump administration to help collect and combine huge amounts of personal data from agencies like the IRS, Department of Defense, and Homeland Security.
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As a result, Reich warns that this AI-powered 'super-database' could be used to go after immigrants, punish political opponents, and spy on everyday Americans, all under the name of government efficiency. Reich compares Palantir to the 'palantír' in The Lord of the Rings, a powerful object used to twist reality and manipulate people. Palantir's software already helps the military and law enforcement analyze personal data, and its CEO, Alex Karp, has said that the company's mission includes disrupting institutions, scaring enemies, and even eliminating them.
But Reich's bigger concern is who is guiding it. Peter Thiel, Palantir's co-founder and biggest investor, helped Trump pick government advisors, many of whom used to work for him. Thiel has said that he prefers the politics of the 1920s, a time before women's voting rights and social programs, which Reich sees as a clear rejection of modern democracy. He believes that people like Thiel are using their money and power to reshape the government in ways that benefit themselves, not the public, by helping Trump build tools that could silence critics and control the population.
Take Reich's Views with a Grain of Salt
However, it is worth noting that Robert Reich served as a Democrat and likely has some bias. After all, it's not like the Democratic Party itself is free of faults. Indeed, in a candid three-hour interview on the 'Joe Rogan Experience' earlier this year, Meta (META) CEO Mark Zuckerberg criticized the Biden administration for pressuring Facebook to censor COVID-19 content—even content that was true—while also admitting that his company went too far in complying with censorship demands, especially around the 2016 election.
In addition, he revealed that government officials aggressively contacted Meta to demand the removal of satirical content and threatened consequences if action was not taken. Reflecting on these events, Zuckerberg said that he regretted falling into media narratives about misinformation and election interference, and described Meta's fact-checking system as overly biased and reminiscent of George Orwell's 1984.
Separately, it is also worth noting that Karp previously pushed back against claims that Palantir had been involved in creating a database of personal information on Americans for the Trump administration.
Is PLTR Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on three Buys, nine Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $105.29 per share implies 20.2% downside risk.