Palantir reportedly lost more than 50 engineers in a year, and its shares shed roughly a quarter of their value in 2026, with chief executive Alex Karp's politics drawing blame, according to media reports.
Key Points:
- More than 50 experienced engineers reportedly left Palantir over the past year, with many joining Anthropic and OpenAI.
- The stock fell 1.6% to $132.22 on Jul. 8, ending a seven-day rally, and remains 37% below its record close.
- European governments are reconsidering Palantir contracts, while Democrats could threaten more than $10 billion in US deals.
Palantir Engineer Exodus Gains Pace
The Financial Times detailed the damage in an investigation built on interviews with more than 20 current and former employees, executives, investors and advisers. Figures from recruitment firm Harnham showed the company lost more than 50 experienced engineers over the past year, with many at odds with its politics. A number of them joined rival AI developers Anthropic and OpenAI.
A source close to Palantir leadership called the exodus claims unfounded. Karp himself has admitted that some engineers quit over the company's vocal support for Israel, and more staff left in early 2025 over its work with the administration of Donald Trump.
Markets reacted quickly. The stock fell 1.6% to $132.22 on Jul. 8, snapping a seven-day rally that had carried it 25% above its Jun. 25 low of $107.27. Even after that bounce, shares sit 27% lower for the year and 37% below their Nov. 3, 2025 record close of $207.18.
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Alex Karp Confronts Washington Risk
D.A. Davidson analyst Gil Luria tied the pullback to fears that Democratic lawmakers could target Palantir's government contracts, a business that generated nearly $2.2 billion in federal revenue during Trump's first 12 months back in office. More than $10 billion in deals could reportedly be at risk if a Democrat wins the presidency in 2028, and hearings could follow if the party retakes the House in November.
Europe is already stepping back. London Mayor Sadiq Khan blocked a £50 million deal with the city's police force in May, and a £330 million contract with the national health service now faces fresh scrutiny. Government agencies in Germany, France and Switzerland are also retreating on political grounds, with Paris steering its domestic intelligence service toward a homegrown supplier.
Palantir disputes the toxic framing. The company, which says it has worked with the US government across five administrations, pledged, "We will continue to work with Democrats and Republicans alike to support all Americans."
Karp, who reportedly donated $1 million to a pro-Trump political group after the 2024 election, keeps courting controversy. On Jul. 1 he argued on television that enterprises should "own the means of production" rather than hand their data to OpenAI and Anthropic, remarks that drew pushback as self-serving. The stock still trades below its 200-day exponential moving average.
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