GOP privacy hawks and Democrats alike sound the alarm over Trump’s Palantir partnership, calling it a “power that will be abused.” Palantir stock $PLTR slides 118 on backlash.
What happened:
Palantir shares ($PLTR) tumbled 118 as bipartisan concerns erupted over the company’s growing role in consolidating sensitive federal data under the Trump administration. A recent Semafor investigation revealed that Trump signed an executive order in March to eliminate “unnecessary barriers” to data integration across federal agencies. This move allegedly strengthens Palantir’s government reach.
The issue:
Palantir, known for building AI-powered surveillance and data analysis systems, is now accused of helping create a vast interagency database that could include Americans’ medical, financial, and personal information. (Related: Trump Taps Palantir to Build Massive Government Spy Network)
Critics, including Republican Rep. Warren Davidson, likened it to a “digital ID”, calling the project “dangerous” and comparing Palantir to the One Ring from Lord of the Rings: “The only good thing to do with the One Ring to Rule Them All is to destroy the Ring.”
Backlash from both parties:
Democrats like Rep. Suzan DelBene warned the move “puts Americans at risk of a massive data breach.” Republican Sen. Mike Rounds echoed the privacy concerns, asking: “If you had the wrong people in government, are there protections to make sure privacy is protected?”
Rep. Thomas Massie and others said they were “concerned” and called for more transparency before reauthorizing surveillance laws next year.
Trump’s White House responds:
A spokesperson said the order was intended to “streamline data collection and improve efficiency,” not infringe on civil liberties. But critics argue the policy opens the door to mass surveillance under the guise of AI-powered modernization.
What’s next:
Rep. Davidson hopes to “shut it down” through the upcoming FISA reauthorization battle, potentially uniting civil-liberty-minded Republicans and Democrats. But with Trump dominating the GOP agenda, and Peter Thiel (Palantir’s co-founder) a close ally of VP JD Vance, internal resistance remains limited — for now.
Palantir’s growing role in federal data consolidation has officially entered the political danger zone. While the company frames it as a tool for efficiency, lawmakers see a digital panopticon forming — and markets are getting spooked.
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