The number one thing that will make large companies reject cloud computing is any hint that why will be kicked off because their legal business goes against the mores of the US West coast tech workers. If Palantir gets kicked off, how long until these same workers call for banning Boeing. A lot of these large conglomerates have at least a division that is involved in the defense industry.
A final point. If you think that facial recognition is too dangerous to sell to police, why are you selling this dangerous technology to corporations where the potential for abuse is still there but with less oversight? Also, if. the police can’t buy this technology, they will buy the service from a middle man that buys it from Amazon.