The UK has signed a major new partnership with US technology company Palantir in a move ministers say will cement Britain’s role as a European hub for defence innovation.
Investment and Jobs
The agreement, unveiled on Thursday by Defence Secretary John Healey, could see up to £1.5bn invested in the UK and the creation of 350 high-skilled jobs. Palantir also announced that London will become the base for its European defence headquarters, underlining Britain’s role in developing cutting-edge military technology.
The deal will provide the Ministry of Defence with access to advanced artificial intelligence (AI) tools designed to speed up battlefield decision-making, improve targeting, and strengthen national security.
This partnership is a major vote of confidence in UK leadership in defence, data and AI technology,” Healey said. “By harnessing the power of AI, we will boost the effectiveness of our Armed Forces and ensure they have the tools they need to keep the British people safe.”
Battlefield Technology
Palantir and the UK military will work on systems that fuse together vast amounts of data from open-source and military platforms. Known as the “kill chain,” this technology allows commanders to generate faster and more accurate options for striking enemy targets.
Similar AI-enabled tools have already been tested in Ukraine, where they are being used to combine intelligence sources and rapidly produce targeting plans. The UK sees these capabilities as central to its recently published Strategic Defence Review and Defence Industrial Strategy.
The government says the collaboration could be worth up to £750m over the next five years, and will help position Britain as “the leading edge of innovation in NATO.”
Boost for UK Defence Tech
As part of the agreement, Palantir will provide technical support for software deployment across UK defence operations. The company also pledged to mentor small and medium-sized UK firms in the defence technology sector, helping them to develop products and expand into international markets.
That support will extend to start-ups hoping to break into the US, with Palantir offering pro bono guidance in some cases. Ministers believe this will strengthen the broader UK defence technology supply chain and generate further economic growth.
Palantir currently employs around 1,000 people in the UK. The new partnership will add up to 200 staff within Palantir itself and another 150 jobs across the defence sector as new Ministry of Defence programmes come online.
Palantir’s Commitment
Palantir chief executive Alex Karp said the agreement reflected the company’s long-term faith in Britain.
“It will see up to £750m invested in the most advanced AI-enabled defence technology, honed on the battlefield in Ukraine and used extensively by the US and NATO,” he said. “It will reinforce the UK’s position as a major military force protecting the West from our adversaries, and underline the UK’s status as our largest presence outside the US.”
Strategic Context
The partnership follows last week’s “Tech Prosperity Deal” signed between Prime Minister Sir Keir Starmer and US President Donald Trump, which brought billions of pounds of US technology investment to the UK.
Together, the deals form part of the government’s “Plan for Change,” which aims to boost economic growth by making defence and technology key engines of innovation.
The Ministry of Defence has also recently launched its Defence Digital and Data Strategy, intended to transform the department into a “data-centric organisation” where information is freely accessible across the armed forces. Palantir is expected to play a key role in delivering that transformation.
Outlook
Officials argue the deal will not only strengthen UK defence but also generate broader benefits for the economy, creating jobs, attracting further investment, and giving Britain an edge in the global AI race.
Critics of Palantir, however, have in the past raised concerns about the company’s close ties to US intelligence agencies and its role in sensitive surveillance projects. The government insists that UK sovereignty over data will be maintained, with systems designed to ensure information is used securely and transparently.
For now, ministers are hailing the agreement as a landmark moment. “Defence will be at the heart of Britain’s innovation drive,” Healey said. “This partnership is proof that the UK is open for business and determined to lead in AI.”
