A UK parliamentary committee has warned that Britain's reliance on US data firm Palantir is an "unacceptable point of weakness." The report cites risks of vendor lock-in and a "mismatch with UK values" due to controversial statements by its leaders. The committee urged the government to use a break clause in Palantir's £330 million contract with the National Health Service. Palantir called the recommendation "irresponsible."
Palantir UK government contracts
- ▪The UK government first used Palantir's technology in 2020 to map the spread of Covid-19 and manage medical equipment distribution
- ▪Palantir holds a seven-year contract with the UK's National Health Service (NHS), awarded in 2023 and valued at £330 million ($444 million)
- ▪Since 2020, Palantir and its partners have secured UK public sector contracts worth a combined $750 million, including with the NHS and Ministry of Defence
- ▪In May 2026, London's mayor Sadiq Khan blocked a proposed £50 million deal between Palantir and the Metropolitan police
Parliamentary data sovereignty concerns
- ▪The report also noted dependencies on other US-based providers like Microsoft and Amazon Web Services, but stated "Palantir concerns us most."
- ▪Palantir's British CEO Louis Mosley called the committee's recommendation to cancel the NHS contract "frankly irresponsible."
- ▪The committee recommended that the NHS activate a break clause in its contract with Palantir in February 2027 to terminate the relationship early
- ▪A UK parliamentary committee report described Britain's over-reliance on U.S. tech firm Palantir as an "unacceptable point of weakness."
- ▪The Science, Innovation, and Technology Committee warned that this reliance could give Palantir overwhelming bargaining power, a situation known as "vendor lock-in."
CEO Alex Karp controversies
- ▪Palantir co-founder Peter Thiel, a supporter of Donald Trump, described the British public's affection for the NHS as "Stockholm syndrome."
- ▪The committee's report cited a "clear mismatch with UK values," pointing to the political views of Palantir's leadership
- ▪In July 2025 testimony, Palantir's European head Louis Mosley distanced the company from Peter Thiel's comments, stating Palantir supports democratically elected governments
- ▪CEO Alex Karp published a 22-point manifesto arguing that Silicon Valley should build weapons and that the West is superior to other civilizations
- ▪Palantir has faced scrutiny for its work with US Immigration and Customs Enforcement (ICE) and the US and Israeli militaries
NHS patient data access
- ▪The Financial Times reported that NHS England gave Palantir and other contractors access to patient data before it had been anonymised
- ▪The health justice charity Medact warned that Palantir's software could enable "data-driven abuses of state power," such as immigration raids using NHS data
- ▪Two petitions with nearly 250,000 signatures have called on UK ministers to break contracts with Palantir
Company valuation questions
- ▪Investor Michael Burry, known from "The Big Short," has taken a short position against Palantir, warning it is overvalued and vulnerable to competition
- ▪The company's value increased by over 1,500% after its US stock market listing in 2020
- ▪Palantir's business is valued at $375 billion
Story comments
Loading comments…