UK Lawmakers Warn Palantir Contracts Are a Growing National Risk

A cross-party group of UK parliamentarians has issued a stark warning about the country’s deepening dependence on Palantir, the American data analytics firm. In a report released Tuesday, the Science, Innovation, and Technology Committee described the government’s expanding use of Palantir’s technology as “an unacceptable point of weakness,” one that could give the company outsized leverage in future contract talks.

“Vendor lock-in inevitably leads to higher costs and declining service quality,” said committee chair Dame Chi Onwurah. “It’s a trap we must avoid.” She warned that in a worst-case scenario, an entrenched supplier could threaten to cut off services to enforce its own agenda. “That could bring public services and our economy to a standstill.”

The report also raised concerns about a values mismatch, citing controversial comments by Palantir cofounder Peter Thiel—who called British attachment to the NHS “Stockholm syndrome”—and a manifesto from CEO Alex Karp urging loyalty to U.S. interests. “If the UK’s goals in healthcare or defense don’t align with Palantir’s political mission, we cannot rely on them,” Onwurah added.

The committee recommended that the NHS activate a contractual clause next February to terminate its partnership early. Palantir has secured contracts worth roughly $750 million with the NHS and Ministry of Defense since 2020, when the UK first used its software to track COVID-19 spread and allocate medical supplies. The company has defended its work, noting its role in enabling innovation within the public sector.

Palantir did not respond to requests for comment. Critics, including advocacy group Foxglove, argue the firm’s political ties and work with U.S. immigration enforcement make it unsuitable for British public services. “Do you want a company with these openly expressed ideologies embedded so deeply it becomes impossible to remove?” asked Foxglove’s Donald Campbell.

While some argue political concerns could slow the UK’s digital transformation, cybersecurity experts stress the fundamental risk. “When you entrust sensitive data to a third party, you must trust them completely,” said De Montfort University professor Eerke Boiten. “Because in practice, they will see your data.”