UK Politicians Warn Palantir Contracts Are ‘Unacceptable Weakness’

A cross-party coalition of UK lawmakers is raising serious concerns about the nation’s deepening reliance on the US data analytics firm Palantir. In a report released Tuesday, the 11-member Science, Innovation, and Technology Committee warned that this growing dependence creates “an unacceptable point of weakness,” potentially giving the company excessive leverage in future contract negotiations.

“We know that with vendor lock-in, over time, we’ll get more expensive and worse services,” said Dame Chi Onwurah, the committee chair and a Labour MP. “It’s a trap that has to be avoided.” She warned that a worst-case scenario could involve a deeply entrenched supplier threatening to withdraw services to enforce its demands. “That could bring public services and our economy to a halt,” Onwurah added. “That’s a huge risk.”

While the committee insists its objections are not ideological, the report highlights a “clear mismatch with UK values.” It specifically calls out controversial remarks by Palantir cofounder Peter Thiel, who in 2023 described British affection for the NHS as “Stockholm syndrome.” The report also references a 22-point manifesto based on a recent book by CEO Alex Karp, which advocates for unwavering loyalty to the US and its interests.

“We have a key vendor saying they will exercise technology in accordance with their political mission,” Onwurah stated. “If what the UK is trying to do in our NHS or our defense does not align with Palantir’s political objectives, we clearly can’t depend upon them as a supplier.”

To mitigate these risks, the committee recommends that the National Health Service,one of Palantir’s largest UK partners,activate a contract clause next February that would allow for an early termination of the relationship.

The UK government first turned to Palantir in 2020 to help track Covid-19 infections and distribute medical equipment. Since then, Palantir and its partners have secured contracts worth a combined $750 million with the NHS, the Ministry of Defense, and other agencies. The company has promoted its ability to drive “innovation and fast-paced problem solving” in the UK public sector.

The report also flags dependencies on other US-based tech giants like Microsoft and Amazon Web Services, as well as Fujitsu, the Japanese firm tied to the Post Office Horizon scandal. However, the committee wrote that “Palantir concerns us most.”

Palantir did not immediately respond to a request for comment.

Scrutiny of the company has intensified recently due to its work with US Immigration and Customs Enforcement (ICE), as well as the US and Israeli militaries. The manifesto drawn from Karp’s book has further fueled concerns about the company’s political leanings.

“They’re not a company that should be anywhere near British public services,” said Donald Campbell, director of advocacy at Foxglove, a nonprofit that has campaigned for the NHS to exit its Palantir contract. “Do you want to be giving a company of this kind,with these openly expressed opinions and ideologies,a central role in the UK state that it may get harder and harder to remove them from?”

Testifying before the committee in July last year, Louis Mosley, head of Palantir’s European operations, distanced the company from Thiel’s remarks about the NHS. He said Palantir’s goal is to “support democratically elected governments in delivering the mandate that they have been elected to deliver,” adding, “We represent a diversity of political views and do not take political positions as a company.”