Key facts
- UK parliamentary committee warned Palantir's NHS contract poses national security risk.
- Committee flagged the £330 million NHS contract as a vendor lock-in risk.
- Concerns raised about Palantir co-founder Peter Thiel's political views and US military work.
- Committee recommended using a 2027 break clause in the NHS contract.
- Palantir's UK CEO defended the deal, calling cancellation irresponsible.
A UK parliamentary committee has issued a critical report on Palantir Technologies Inc., warning that the nation's reliance on the US data analytics firm for sensitive public sector data creates an "unacceptable point of weakness." The Commons Science, Innovation and Technology Committee highlighted Palantir's £330 million ($444 million) contract with the National Health Service (NHS) as a significant vendor lock-in risk. The report also cited concerns over Palantir co-founder Peter Thiel's political ties and the company's work with the US military, deeming it a "clear mismatch with UK values." The committee urged the government to exercise a break clause in the NHS contract in 2027 and explore UK-based alternatives or in-house solutions. Palantir's UK CEO, Louis Mosley, defended the deal, stating that cancelling it would be "frankly irresponsible" and emphasized that NHS data remains under the health service's control. The report also broadly criticized the government's digital transformation strategy, calling its savings targets "worryingly optimistic." Mosley launched a robust defense of his firm after the report called for the cancellation of the £330 million deal, stating it helped deliver 110,000 extra operations.