Palantir: UK Defence secures cutting-edge AI tech as part of US investment package
Defence Secretary John Healey has signed a deal expected to be worth up to £750m with a leading US software firm that will enable British forces commanders to better identify targets on the battlefield.
Palantir, a data mining company with headquarters in the US, enables government and commercial clients to make informed decisions based on extensive and complex data.
This technology will be integrated into the UK Armed Forces to enhance its AI-powered capabilities, already tested in Ukraine, and will help accelerate decision-making, military planning, and targeting.
It will provide commanders with a comprehensive, real-time view of the battlefield, pinpointing enemy assets including tanks, aircraft, and naval vessels, using data at a scale and speed that would be impossible without AI.
It can also help monitor the capability, maintenance, and personnel readiness of its own assets by using data such as medical and payroll records.
Defence Secretary John Healey said: "This partnership is a major vote of confidence in UK leadership in defence, data and AI technology and as an ideal location for companies to invest and expand.
"By harnessing the power of AI, we will boost the effectiveness of our Armed Forces, ensuring they have the tools they need to keep the British people safe.
"The work will unlock billions of pounds of investment into UK innovation, creating hundreds of skilled UK jobs and making defence the leading edge of innovation in Nato."
Cutting-edge data and AI tech is nothing new
Palantir software has been adopted by the UK in the past.
In 2023, it secured a £330m, seven-year contract with NHS England, linking data that was previously stored separately – including the number and location of beds, infection and death rates, and PPE stockpiles – into one complete data set.
However, it was criticised by campaigners who cited concerns around patient privacy and data handling and warned that the government risked undermining public trust with plans to "shove hospital data" into a private contractor without proper consultation.
Integration of Palantir was included in a £150bn American investment package announced during US president Donald Trump's historic second state visit, which saw firms such as Microsoft and Google pledging to spend billions in the UK.
In return, the MOD will spend up to £750m on Palantir AI technology.
Building on its existing UK workforce of around 1,000, the software company has committed to hiring up to 200 new UK staff and up to 150 jobs in the broader UK defence technology sector.
Palantir has also announced plans for London to become the base for Palantir's European defence business, establishing Britain as a hub for defence technology innovation across Europe.
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