Palantir Begins Rapid Expansion Across U.S. Government Agencies

Between 2007 and 2009, Palantir Technologies experienced explosive growth within the U.S. government, expanding from eight pilot programs to more than 50 programs across multiple federal agencies. This rapid expansion was driven by referrals from early adopters and represented Palantir’s transition from a small CIA-backed startup to a major government contractor with broad reach across the national security apparatus.

The expansion built on Palantir’s initial success with the Joint IED Defeat Organization (2006) and CIA (2005-2008). Between 2006 and 2008, referrals from satisfied early users catapulted Palantir into contracts with the FBI, NSA, Department of Homeland Security, Securities and Exchange Commission, and NYPD. The company’s ability to integrate disparate data sources and provide powerful analytical capabilities made it attractive across different government missions, from counterterrorism to financial fraud detection to criminal investigation.

By 2013, Palantir was being used by at least 12 groups within the U.S. government including the CIA, DHS, NSA, FBI, CDC, Marine Corps, Air Force, Special Operations Command, and West Point. Federal procurement records from 2007-2021 would eventually show 940 Palantir contracts with various intelligence and security entities totaling over $1.5 billion, with the rapid expansion of 2007-2009 laying the foundation for this growth.

The 2007-2009 expansion period was particularly significant because it demonstrated Palantir’s versatility. The same core technology developed for tracking terrorists could be adapted for:

• FBI criminal investigations and counterintelligence
• NSA signals intelligence analysis (though this relationship was limited)
• DHS border security and immigration enforcement
• SEC financial fraud detection
• Military Special Operations planning and targeting
• CDC disease outbreak tracking

This expansion raised concerns about the concentration of surveillance capabilities in a single private company. Palantir was becoming the default data integration and analysis platform across the national security and law enforcement ecosystem, with access to vast amounts of sensitive government data and intelligence. The company’s role in multiple classified programs also meant that Palantir employees and executives held security clearances and had visibility into highly sensitive operations across different agencies.

The rapid growth was enabled by Palantir’s business model: provide initial pilots at low or no cost, demonstrate value to users, then expand through referrals and word-of-mouth within the government. Unlike traditional defense contractors that competed through formal procurement processes, Palantir often entered agencies through intelligence or innovation offices that had more flexibility in contracting.

By 2009, Palantir had established itself as an essential technology provider for data-intensive government operations, setting the stage for further expansion into law enforcement (NYPD, LAPD) and eventually controversial immigration enforcement applications with ICE.