I am 100% sure you have absolutely no idea what Palantir actually do, and I suggest you go actually read about it. There's plenty of resources out there which will explain in considerable detail what the product is, what the services are, how the services get provided, and the benefits (for example one of Palantir's premier operations is "forward deployed engineers" - which is super-handy for organizations which work in government because it means they come to you and do the installs and setup, but don't keep or even have access to any of the data - the relationship is between you and the specific employees - who in turn need to have Federal clearances - and not Palantir corporate).

This arrangement is extremely conventional, but most company's hate doing it and so don't unless they're operating with the expertise to manage those types of orgs (which is usually only profitable if you have a unique advantage or specialize in seeking a lot of contracts and then navigate the data handling rules to realize - hopefully - some synergies).

I don't like Thiel, but his detractors are also very obviously ignorant as to how any of the Federal government normally works.