An explosive story regarding the Trump administration's collaboration with Palantir, which could result in the creation of a master database containing data on every American, was released by the New York Times last month. If such a "master list" was created, the Times claims, it would grant the president "untold surveillance power."
President Donald Trump signed an executive order earlier this year allowing the federal government to exchange data on Americans among multiple organisations. However, we now have a better idea of how the administration plans to accomplish this. Trump has hired Palantir, a software startup co-founded by Trump and Republican megadonor Peter Thiel, to carry out these initiatives.
According to the New York Times, Palantir's technology would allow for the compilation of sensitive information from agencies such as the Department of Homeland Security, Immigration and Customs Enforcement, and the Internal Revenue Service. Various government databases already have information on Americans' bank account numbers, medical claims, disabilities, student loan levels, and other details, though not in one location.
In order to boost government efficiency and save hard-earned public cash, the Trump administration has stated that it wants to "eliminate information silos and streamline data collection across all agencies." The threat of a central database, however, is a nightmare for privacy advocates and has even prompted security and privacy worries from former Palantir staff members.
Palantir controversial role
Despite its reputation for being extremely covert about its data mining and spying activities, Palantir positions itself as a data and analytics firm. Additionally, Palantir has been under fire for offering information services to support the Israeli military during the Israel-Hamas conflict in 2023. The IDF receives intelligence services from Palantir, as CEO Karp has previously revealed.
Palantir has responded by defending its collaboration with Israel and refuting claims that it is supporting war crimes, as its most vocal detractors claim. As part of the Trump Administration's contentious policing and deportation initiatives, Palantir has also been called upon to assist U.S. Immigration and Customs Enforcement (ICE) in tracking immigrants in the United States.
Why would the Trump Administration use Palantir to acquire data?
Palantir has already been contracted by the federal government for several years. For example, Palantir previously collaborated with Health and Human Services to track the COVID-19 pandemic.
However, Palantir's stock and revenue have soared since Trump's inauguration earlier this year. To date, the federal government has given Palantir around $113 million in 2025.
Furthermore, last week, Palantir was given a $795 million contract by the Department of Defence. In 2024, Palantir earned $1.2 billion from the U.S. government, according to the company's last quarterly report.
Furthermore, Thiel, a co-founder of Palantir, is a key Republican fundraiser. In addition to giving $1.25 million to Trump's 2016 campaign, he has contributed tens of millions of dollars to Republican congressional campaigns over the years.