Two Reasons:

1) It holds deeply sensitive data and does so in the US. In times of increased mistrust of the US, many (including myself) see that as a risky choice.

2) Speaking of mistrust in America and American corporations, have you heard their execs talk? It's absolute cuckoo-town:

> If they are not scared, they don’t wake up scared, they don’t go to bed scared, they don’t fear that the wrath of America will come down on them, they will attack us. They will attack us everywhere.

Well, you've convinced me. I'm scared of America, I'm scared of American companies and I'm scared of your company in particular.

Good job, I guess?

Are you sure they hold sensitive data themselves though? My understanding was they integrate their tools with customers own data and don't have access to it themselves (at least in theory).

Of course I agree that quote is insane and you can dislike them for political reasons, but I want to understand the technological fears and see if any are unfounded.

The article mentions “while the underlying data may remain under the MoD’s control, any insights derived from that data do not. The implications of this, the insiders say, are far-reaching, especially because of the vast quantity of personal and other data the company has access to across UK government departments.”

Part of the core offering is data washing.

they most definitely do not, and especially not on-prem, national security systems like are being discussed here. They sell software.

https://www.palantir.com/palantir-is-still-not-a-data-compan...

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