Palantir's Defense Chief Raises Concerns Over China's Military Intentions

Palantir Technologies Inc. (PLTR) Head of Defense and former Congressman Mike Gallagher is raising alarms about China's military goals, cautioning that the United States is not sufficiently preparing for a potential conflict.

Key Statements: During his speech at the National Security Innovation Base Summit 2025, Gallagher remarked, "My entire eight years in Congress could be summarized as China is preparing for war with America, and we’re not taking it seriously." He pointed out that the economic struggles faced by Chinese President Xi Jinping could actually reflect the country's preparations for conflict.

Gallagher explained, "Xi Jinping’s economy is struggling because he is trying to make it resilient against the hardships that would come with a war against America." He countered the arguments suggesting that economic pain would prevent Chinese aggression, emphasizing, "In a Marxist-Leninist system, they are much less sensitive to casualties and pain than in a republic such as ours." He called for the U.S. to "rearm as quickly as possible" and redirect military assets towards the Pacific region.

Palantir’s Growing Role: These warnings occur as Palantir strengthens its ties with the administration of President Donald Trump. The company’s CEO Alex Karp has publicly voiced strong support for Elon Musk’s Department of Government Efficiency (DOGE), describing it as a "revolution" that would be advantageous for Palantir.

Palantir has experienced substantial growth in government contracts, reporting a 45% increase in U.S. government revenue year-over-year, reaching $343 million in the most recent quarter. The firm has also disclosed plans for AI deployments at Societe Generale aimed at combating financial crime and has partnered with TWG Global to provide AI solutions across the financial sectors.

Investment Potential: With Palantir's influence expanding, Wedbush Securities analyst Dan Ives suggested that investing in PLTR now could be akin to buying Tesla Inc. (TSLA) stock in 2015, highlighting it as part of "the biggest tech trend in the last 40 to 50 years."

Stock Performance: On Wednesday, Palantir Technologies Inc. closed at $90.13, marking a 6.79% increase. In after-hours trading, shares rose slightly to $90.50, up 0.41%. Year-to-date, the stock is up 19.87%, and over the past year, it has surged 278.54%, as per data from Benzinga Pro.

Palantir, China, Military