Senior Ministry of Defence engineers have warned that Palantir Technologies poses a national security threat to the UK, claiming the US AI surveillance firm's government contracts could compromise sensitive data. Two anonymous sources with detailed knowledge of Palantir's systems told the Nerve that the company's access to UK government data creates vulnerabilities that ministers appear to misunderstand.

Despite government assurances that data remains sovereign, the insiders argue this misses the point entirely. They say Palantir can aggregate metadata across departments to build its own intelligence picture, even without direct data ownership. One source described how combining three unclassified data points could reveal classified military operations, such as nuclear submarine movements.

The revelations come amid growing concerns about Palantir's expanding role in UK critical infrastructure, including a recent £1.5 billion investment deal. Critics point to the company's controversial work with US immigration enforcement and military operations as evidence of its potential for misuse. The MoD has not responded to the latest allegations, though previously maintained contractual controls ensure data protection.