Mandelson's Lobbying Firm Connections to Major UK Government Tech Deals
Serious questions are being raised about the UK government's agreements with prominent US technology firms OpenAI and Palantir, both of which were clients of the lobbying company co-founded by Peter Mandelson. The connections have sparked concerns about transparency and potential influence in multi-million pound contracts.
Global Counsel's Client List and Government Agreements
Global Counsel, the lobbying firm co-founded and part-owned by Peter Mandelson, counted OpenAI among its clients in 2024. Shortly after this period, the UK government entered into significant agreements with the artificial intelligence company. OpenAI signed a memorandum of understanding with the Department for Science, Innovation and Technology to explore deploying AI across Britain's justice, security and education systems.
Additionally, OpenAI secured a commercial agreement to provide 2,500 ChatGPT licences to UK civil servants, beginning with implementation at the Ministry of Justice. These developments occurred while Mandelson served as ambassador to Washington, appointed by Prime Minister Keir Starmer.
Palantir Contracts and Undisclosed Meetings
The controversy extends to defence technology company Palantir, another former client of Global Counsel. Palantir has secured over £500 million in contracts with both the National Health Service and the Ministry of Defence. Particularly concerning is a £241 million military contract awarded to Palantir without an open tender process.
This contract followed a meeting between Prime Minister Keir Starmer, Peter Mandelson, and Palantir's chief executive Alex Karp at the company's Washington DC offices in February 2025. The meeting was not officially minuted, raising further questions about transparency and due process.
Political Pressure and Demands for Transparency
Members of Parliament from across the political spectrum have intensified pressure on the government to disclose full details surrounding these agreements. Labour MP Clive Lewis described the Palantir deal as having questionable aspects, while Liberal Democrats accused the government of deliberate obfuscation rather than clarification.
Shadow defence secretary James Cartlidge has submitted multiple parliamentary questions seeking clarification on several key points:
- Why the Washington meeting between Starmer, Mandelson and Palantir executives was not minuted
- Whether Starmer was aware of Palantir's status as a Global Counsel client during the meeting
- Whether defence ministers would publish correspondence with Mandelson
- Whether the government would release all documentation related to the £241 million defence contract
Official Responses and Ongoing Controversy
Defence minister Luke Pollard has stated that Peter Mandelson had no influence on the decision to award the Palantir contract, asserting that Defence Secretary John Healey made the decision independently. Pollard committed to publishing "as much material as we can as soon as reasonably possible."
OpenAI has distanced itself from the lobbying connections, with a spokesperson stating that their agreements with the UK government were managed directly by their London-based teams without reliance on Global Counsel for connections or engagement. The company recently appointed former Chancellor George Osborne to lead their international expansion efforts.
Global Counsel maintains that they played no role in forming or negotiating either the memorandum of understanding or the commercial agreement with the Ministry of Justice, though they acknowledge their client relationships were properly declared on official registers.
Historical Context and Broader Implications
The controversy gains additional complexity from historical revelations about Mandelson's connections. During Global Counsel's establishment in 2010, Mandelson corresponded with convicted sex offender Jeffrey Epstein about finding "rich individuals" as clients, according to emails released during US Department of Justice investigations.
Donald Campbell, director of advocacy at tech fairness campaign group Foxglove, summarised growing concerns: "The list of American companies with Peter Mandelson-shaped question marks over their UK government deals is growing. If we are to have confidence that the public interest was prioritised in these deals, the government must reveal full details behind all agreements with US big tech firms."
The situation highlights ongoing tensions between government efficiency in securing technological partnerships and the necessity for transparent, accountable procurement processes, particularly when former lobbyists hold influential diplomatic positions.
