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Reality distortion, or they're just using military terminology?

One and the same. It would be like if I tried to call my product Tactical Software as a Service

It would still only be software as a service, but I would just brand it in a way to make it more appealing to certain buyer personas without any actual investment or commitment on my part.

What's wrong with that?

Nothing, their argument is that it’s not worth adopting Palantir’s marketing wording.

When applying strange military terminology to something clearly non-military, is that not a distortion of reality?

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