Palantir Technologies Inc. is deepening its presence in the United Kingdom with a commitment to invest £1.5 billion by 2030 and a major contract with the Ministry of Defence.
The move reflects a strategic shift for the US-based data analytics company, which is now focusing more heavily on the UK market after previously scaling back its European operations.
According to Bloomberg, Palantir is preparing to finalise a £750 million, five-year deal with the Ministry of Defence before the end of the year.
This contract will replace an existing £75 million, three-year arrangement that is nearing expiration.
£1.5 billion UK investment and new defence contract
The investment programme is designed to strengthen Palantir’s role across the UK economy, with projects spanning defence, health, policing, and other public sector services.
The pledge includes creating around 350 jobs, of which 200 will be at Palantir itself, while the remainder will be generated through other employers working on the company’s projects.
The £750 million agreement with the Ministry of Defence marks a tenfold increase compared to the current deal, reflecting the growing reliance on artificial intelligence and data tools within the UK’s national security strategy.
Details of the deal are expected to be announced on Thursday, coinciding with US President Donald Trump’s visit to the UK.
Expansion in health, policing, and defence
Palantir’s renewed push in the UK highlights the company’s ambition to become a core technology partner in critical areas.
Beyond the Ministry of Defence, Palantir has already been active in the NHS and in policing projects, providing data systems to manage healthcare delivery and public safety.
The new investment suggests a scaling up of these collaborations, as the company seeks to expand its AI-driven platforms across multiple sectors.
The strategy is also designed to strengthen Palantir’s reputation in Europe after a period of contraction. A few years ago, the company reduced its European operations, citing slow adoption of AI technologies.
The new commitment marks a clear reversal, as leadership now sees the UK as a critical market in Western efforts to use AI for security and public service delivery.
From CIA backing to record sales growth
Founded in 2004 by Alex Karp and Peter Thiel, Palantir initially secured funding from the CIA and grew its presence through contracts with US intelligence agencies and major banks.
Despite this early support, it struggled to sell its software at scale for many years, as its platforms required heavy customisation.
Over the past year, however, Palantir has reworked its sales approach to appeal to a broader customer base.
Demand for its AI tools has risen significantly among both US government agencies and commercial firms, allowing the company to report its strongest sales growth to date.
Palantir’s strategic positioning in UK and Europe
Chief Executive Alex Karp and Chief Technology Officer Shyam Sankar have repeatedly stressed the importance of securing Western democracies at a time of heightened global conflict and tensions with China.
By committing to long-term investments and securing a major defence deal, Palantir is positioning itself as a leading supplier of AI technology in the UK, a market that is expected to become increasingly important in the broader European technology landscape.
The UK partnership therefore, marks both a commercial and strategic milestone for Palantir.
It not only gives the company a foothold in Europe’s defence and security sectors but also strengthens its influence in healthcare and policing, sectors that are increasingly reliant on integrated AI systems.
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