Palantir Executive Warns Against "Mob Rule" in Government Contracts

Tom Watson, a former senior leader in the UK's Labour Party, is now a top official at a powerful American tech company called Palantir. He recently appeared on a BBC podcast and warned that public anger should not decide which companies get government contracts. Watson said the law — not outside pressure — should guide how the government spends its money. His comments come as Palantir faces strong criticism in the UK over its work with the Israeli military and US immigration enforcement.

Palantir was co-founded by billionaire Peter Thiel, who supports former US President Donald Trump. The company builds software that uses artificial intelligence, and it has worked with the Israeli military and a US immigration enforcement agency. Because of these connections, many people in the UK are upset about their government using Palantir's services. Watson argued that canceling contracts because of public backlash could get ministers 'in a lot of trouble.'

UK Prime Minister Andy Burnham is under heavy pressure from members of his own Labour Party and from trade unions. They want him to cancel Palantir's contracts with the government, including a large £330 million deal with the National Health Service. Watson pushed back against this pressure and said decisions about government contracts should follow the rule of law. He warned that giving in to public anger instead could create serious legal and political problems.

Palantir is also fighting a legal battle with Sadiq Khan, the Mayor of London. Khan tried to block a £50 million contract that would have let Palantir use its AI tools to help the Metropolitan Police with investigations. Despite this opposition, Palantir continues to look for more work in the UK, where it already earns around £427 million each year. The company clearly sees the UK as an important market for its technology.

Watson spoke openly about working with any future government, even one led by the right-wing Reform UK party. He said Palantir would assist with immigration crackdowns if asked, even though that is not currently one of their main areas. He called Palantir 'the most interesting company on the planet' when he announced his new job last month. His role is partly meant to help Palantir create more value for British public services, jobs, and skills.

Before joining Palantir full-time, Watson was a minister under former Prime Minister Gordon Brown, handling defense and digital policy. He left Parliament in 2019 and later became an adviser to the gambling and music industries. He had been a part-time adviser to Palantir since 2024 before taking on his current senior role. Palantir confirmed that Watson has taken a leave from the House of Lords and given back his parliamentary pass while working for the company.

Not everyone agrees that Watson's support for Palantir is well-founded. Chi Onwurah, a Labour MP who chairs a science and technology committee, said Watson may be too dazzled by exciting new technology. She warned that the UK cannot afford to be too dependent on one foreign company, especially one subject to US laws that could affect British data. Her comments suggest the debate over Palantir's role in UK public services is far from over.