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The Ministry of Defence has signed a new strategic partnership with Palantir to accelerate the development of AI-driven defence technology, secure investment, and support the UK’s Defence Industrial Strategy.

Defence Secretary John Healey confirmed the arrangement during a meeting in London with Palantir Chief Executive Alex Karp earlier this month. The partnership is expected to generate up to £1.5 billion in investment and create around 350 highly skilled jobs, with Palantir establishing London as its European headquarters for defence activity.

The agreement will see Palantir and the UK Armed Forces collaborate on advanced data and AI-enabled systems, including applications already trialled in Ukraine. These capabilities will strengthen military planning, targeting, and intelligence functions, contributing to faster decision making and improved operational effectiveness. Development will include elements of the Digital Targeting Web, a core project within the Strategic Defence Review, which is designed to integrate multiple data sources to give commanders rapid options in combat.

In addition to direct investment, Palantir has committed to supporting the wider UK supply chain. The company will provide mentoring for British defence technology firms, including start-ups and SMEs, with pro bono support to help them expand into US and NATO markets. Palantir will also assist UK-developed software products to integrate into international defence systems, offering suppliers new routes to scale their technology.

The partnership is expected to identify opportunities worth up to £750 million over the next five years within UK Defence. It builds on the recently announced Defence Industrial Strategy, which positions defence as a driver of innovation and economic growth. Palantir has pledged to increase its UK workforce by up to 200, with a further 150 roles anticipated across the wider defence technology sector to support Ministry of Defence programmes.

Healey described the partnership as a vote of confidence in the UK’s position as a global hub for defence, data, and AI innovation. He stated that the initiative will enhance the effectiveness of the Armed Forces and ensure they have the tools needed to address evolving security challenges.

Karp underlined the company’s commitment to Britain, highlighting that the UK represents Palantir’s largest base of operations outside the United States. He said the partnership would reinforce the UK’s role within NATO and provide a platform for the next generation of AI-enabled defence technologies.

For UK suppliers, the collaboration signals a significant opportunity to engage with new programmes, support the development of advanced defence systems, and access international markets through partnership with Palantir.

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Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.

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