When Palantir Technologies Inc. (PLTR) sued AI startup Percepta AI last fall, accusing it of stealing trade secrets and poaching talent, the young company stayed quiet. Not anymore. In a Monday court filing, Percepta came out swinging, calling Palantir's claims "baseless" and arguing the lawsuit is really about crushing a potential competitor before it gets off the ground.
Percepta flatly denies using any of Palantir's confidential information. More importantly, its lawyers are challenging the fundamental legal basis of the case, arguing that Palantir's post-employment agreements are "facially overbroad and unenforceable." According to CNBC, the filing suggests Palantir's real motivation is to "destroy" Percepta and intimidate other employees who might consider jumping ship.
Palantir hasn't publicly responded to the counterpunch yet.
The whole mess started in October 2025, when Palantir filed suit against two former employees, Radha Jain and Joanna Cohen, claiming they stole confidential information to build what Palantir called a "copycat" business. That business is Percepta, and now it's fighting back with lawyers who argue this is about competition, not theft.
Palantir's Dominance in AI Continues
The timing is interesting because Palantir has been on an absolute tear in the AI market. Despite all the noise about tech bubbles and geopolitical tensions, the company has emerged as a genuine market leader with performance that backs up its valuation.
According to I/O Fund analyst Beth Kindig, Palantir's growth isn't speculation-driven hype. The company's AI Platform drove revenue growth of 62.8% year-over-year in Q3, powered by real customer adoption rather than promises. Alex Karp's company has also been expanding strategically and recently launched a new operating system designed to address energy bottlenecks in AI development.
The numbers tell the story: Palantir ranks in the 92nd percentile for growth and the 95th percentile for momentum, according to market analytics. Over the past year, the stock climbed 171.52%. On Tuesday, shares dipped 0.25% to close at $178.96.
So here's the situation: A dominant player in AI is suing a startup founded by former employees, and that startup is now arguing the lawsuit is less about protecting secrets and more about protecting market position. It's a familiar pattern in Silicon Valley, where the line between legitimate trade secret protection and anti-competitive behavior can get blurry. The courts will have to sort out who's right.