The executives of Percepta AI, a startup in the artificial intelligence space, that was accused by Palantir Technologies Inc. (NASDAQ:PLTR) of stealing confidential information and attempting to poach top talent, have labeled these claims as an effort to “stifle competition” in a Monday filing.

Percepta has denied these allegations, stating that it did not use any of Palantir’s confidential information. The company’s lawyers have also argued that the post-employment agreements are “facially overbroad and unenforceable” and that Palantir’s claims are "baseless," reported CNBC.

Palantir did not immediately respond to Benzinga‘s request for comment.

The lawyers also stated that Palantir was looking to scare others away from leaving and to “destroy” Percepta before it could grow further.

This legal battle between Palantir and Percepta has been ongoing since October 2025, when Palantir filed a lawsuit against two former employees, Radha Jain and Joanna Cohen, alleging that they stole confidential information to support the creation of "copycat" business, Percepta.

Palantir Leads AI Growth Amid Competition

This lawsuit comes amid the ongoing competition in the AI industry, which has seen Palantir emerge as a market leader despite geopolitical tensions and tech bubble concerns.

Palantir's recent gains were fueled by strong business performance rather than speculation, with its AI Platform (AIP) driving revenue growth of 62.8% year-over-year in Q3, according to I/O Fund analyst Beth Kindig.

The Alex Karp-led company has been experiencing a surge in stock price due to strategic expansions and the launch of a new operating system designed to address energy bottlenecks in AI innovation.

Benzinga's Edge Rankings place Palantir in the 92nd percentile for growth and the 95th percentile for momentum, reflecting its strong performance in both areas. Check the detailed report here. 

Price Action: Over the past year, Palantir stock climbed 171.52%, as per data from Benzinga Pro. On Tuesday, it fell 0.25% to close at $178.96.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.