Palantir Technologies Inc. (PLTR) is under renewed investor scrutiny as shareholders representing over $336 billion in assets call for an independent human-rights review of the company's software. The push comes as Palantir's artificial intelligence tools take center stage in Ukraine, where CEO Alex Karp recently signed a data-sharing agreement with the country's military.
The proposals, which will be voted on at Palantir's annual meeting on June 3, include a call for expanded disclosure around defense due diligence and a human-rights impact assessment. The board has recommended shareholders vote against both measures, arguing that Palantir is not a data or surveillance firm and that legal and classification hurdles prevent further information sharing.
The controversy arrives against a backdrop of strong financial performance. Palantir raised its 2026 revenue outlook and reported first-quarter revenue of $1.63 billion, an 85% surge year-over-year. U.S. government sales jumped 84% to $687 million. 'The United States remained the constant core,' Karp said in a statement to shareholders.
Ukraine has become a key proving ground for Palantir's AI-driven battlefield tools. On Friday, Karp met with President Volodymyr Zelenskiy and finalized a data-sharing deal tied to the Brave1-Datamine project. Karp told United 24 that Ukraine has developed 'among the most important' adaptive targeting systems worldwide, with Palantir supplying components while local Ukrainian teams handle much of the work.
Ukrainian Defence Minister Mykhailo Fedorov said over 100 firms are involved in training upwards of 80 AI models aimed at detecting and neutralizing Russian drones. 'Technology, AI, data analysis and the mathematics of warfare' are shaping outcomes on the ground, he noted.
The defense tech landscape is increasingly competitive. In March, Palantir and Anduril collaborated on software for the Golden Dome missile-defense project, a $185 billion initiative. Both firms also have ties to SpaceX on certain elements of the project, intensifying the rivalry between Silicon Valley companies and traditional defense contractors vying for military AI funding.
European expansion remains challenging. Germany's military is not moving forward with Palantir contracts, according to a senior cyber-defense official quoted by Handelsblatt, who described allowing outside industry workers access to a national database as 'inconceivable.' This resistance highlights a core dilemma: governments seek rapid technological solutions but are reluctant to cede control over sensitive data.
PLTR stock traded at $135.05, up 1%, giving the company a market capitalization near $347 billion. With a price-to-earnings ratio around 152, the stock leaves little room for error if growth slows or investor enthusiasm for AI software wanes. Prediction markets on Polymarket assign a 51% probability to shares closing the week of May 11 between $134 and $136.
Wall Street analysts acknowledge Palantir's growth but debate its valuation. Jefferies analyst Brent Thill described the company's fundamentals as 'exceptional' but argued that the current valuation requires a 'heroic durability assumption,' raising doubts about further upside. The bear case hinges on potential declines in government demand, stricter European data controls, or human-rights concerns affecting procurement.
The June shareholder vote may not immediately impact sales, but it underscores the growing investor focus on the ethical implications of one of the market's most expensive AI stocks.
