Palantir’s expanding role inside the UK government is facing fresh scrutiny, particularly over whether public institutions are becoming too dependent on the US software company.
The debate intensified after then-Prime Minister Keir Starmer visited Palantir’s US showroom in February 2025. Shortly afterward, the company received a £240 million, or roughly $327 million, UK contract. Foreign Policy argues that Palantir’s military-style demonstrations and close political relationships have helped it sell a much broader vision than traditional enterprise software.
NHS Deal Faces Questions
Palantir plays a major role in the NHS Federated Data Platform, which brings information from different parts of the health service together for hospitals and clinicians.
But adoption has been uneven. Of 139 NHS trusts classified as live, 52 reportedly did not use a single platform application during the year before June. Some users have also complained about slow dashboards and technical problems.
Another concern is vendor lock-in. Much of what institutions build using Palantir remains inside its proprietary system, potentially making switching providers expensive and complicated. The UK Ministry of Defence has similarly acknowledged that changing supplier could require rebuilding underlying infrastructure.
Palantir and the NHS have highlighted estimates that the platform contributed to 110,000 additional operations, but the methodology itself says it cannot establish direct cause and effect. The UK Statistics Authority has also raised concerns about how NHS England presented statistics promoting the platform.
Other European governments have taken a different approach. France recently replaced Palantir at its domestic intelligence service with French company ChapsVision, citing digital sovereignty concerns.
Bottom line: Palantir is becoming deeply embedded in important parts of Britain’s health and defense infrastructure. The debate is increasingly about whether its technology delivers enough value to justify the cost and the risk of becoming difficult to replace.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
