The relationship they have with the DOD/NSA is simply unreal. their offices on the east coast are full of high-ranking officials, generals, etc -- all the time.
Palantir powers a lot of the retina-database insurgent tracking software in Iraq and Afghanistan.
I've personally heard from US Army Special Operations forces that the imaging software they use to plan "missions" is powered by Palantir (but is frequently slow and buggy, so they resort to Google maps)
I noticed that an Operator featured in Sanjay Gupthas CNN documentary on Marajuana had a Palantir patch next to his US Flag patch on his carrier chest rig.
Creepy stuff.