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Palantir's role in UK public services branded 'unacceptable' by committee report

MPs said the company’s growing role could weaken bargaining power and urged ministers to develop a UK-based alternative.

  • On Tuesday, the Science, Innovation, and Technology Committee warned that Britain's "ballooning reliance" on Palantir's technology "represents an unacceptable point of weakness" that could hand the company overwhelming bargaining power in future negotiations.
  • Since 2020, Palantir and partners have secured $750 million in government contracts with the NHS and Ministry of Defense; the Committee urged activating a 2027 break clause to prevent vendor lock-in that could leave services "at the mercy" of foreign actors.
  • The report highlighted a "clear mismatch with UK values," citing Palantir co-founder Peter Thiel's 2023 "Stockholm syndrome" comments about the NHS and CEO Alex Karp's manifesto advocating for fealty to U.S. interests.
  • While the NHS defends its £330 million contract as delivering "huge benefits for patients," the Committee warned the government's plan to save £45 billion annually is "worryingly optimistic" without coherent digital strategy.
  • The report identified similar dependencies on U.S.-based cloud providers Microsoft and Amazon Web Services, as well as Japanese company Fujitsu, prompting MPs to call for technology sovereignty and support for domestic alternatives.
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UK MPs call on the government to terminate a contract with the US company Palantir, whose presence in the public sector is "unacceptable".

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Reuters broke the news in New York, United States on Tuesday, June 2, 2026.
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