Palantir builds software that customers use to work with their own data. Custody of the data remains with the customer.

This is like saying a hospital that uses Excel is handing over data to Microsoft.

They don't have in-house talent to implement what they want. The same reasons they used to hire Deloitte/EY/KPMG/PwC. Palantir is one rung up from those places when it comes to talent/ability to deliver.

Palantir is a glorified IT consulting company. You tell them "I want a system to manage patient records" and they will dispatch a team of engineers fresh out of college to build it for you while charging top dollar. They are able to get government & military contracts because of lobbying and influence, but generally everything you see about them online is marketing.

Which customers? Outside of the HN bubble, very few consumers know or care which entities are using Palantir.

What is going on?

Their CEO is a crazy person who seemingly wants to tear down democracy

Hysteria? Have you listened to Karp? Palantir pushes some pretty shit-tier BI noise to clueless executives (it's actually uproarious the mythology that has built around that company), and this weird creep talks like they're the masters of the universe.

Thiel is another incredibly bizarre creep, and he sits as the chairman of the board. Both are very tightly associated with the Trump crime syndicate and the US government, which increasingly is the world's #1 threat, and should be treated as equally dangerous.

I'd be concerned if any of the parties involved were halfway competent. This is a grift for taxpayer dollars, nothing more.

  spyware

Why is Palantir a spyware company, but Snowflake or Databricks are not? "Spyware" has an actual definition, and there are real companies that sell it, like Pegasus. It's not some catch-all term for what people call "evil".