The UK is set to become a global leader in defence innovation through a new strategic partnership with Palantir, designed to unlock up to £1.5 billion in investment, create hundreds of high-skilled jobs, and strengthen national security. The partnership, signed on 18 September 2025 by Defence Secretary John Healey, will see Palantir establish its European headquarters for defence in London and work closely with the UK military to develop AI-powered capabilities that have already been tested on the battlefield in Ukraine. These technologies aim to accelerate decision-making, improve targeting, and enhance operational effectiveness across a wide range of defence activities.
Palantir’s investment is expected to create up to 350 new high-skilled jobs while also supporting the growth of UK defence tech companies across the supply chain. The company will provide mentorship and guidance to British start-ups and SMEs, helping them scale into US and international markets. Defence Secretary John Healey emphasized that the partnership demonstrates confidence in the UK’s leadership in defence, AI, and data technologies, while making defence a driving force for innovation, growth, and skilled employment.
The collaboration will focus on transforming battlefield lethality through advanced data and AI capabilities in intelligence, decision support, targeting, and analysis. Key initiatives include the development of the ‘kill chain’ and the Digital Targeting Web, which will integrate multiple data sources to provide faster options for military operations. These systems, already proven in Ukraine, will allow the UK to harness sensitive information and respond rapidly to emerging threats.
Palantir CEO Alex Karp highlighted the company’s commitment to the UK, noting that up to £750 million will be invested in cutting-edge AI-enabled defence technologies. The partnership will build on Palantir’s existing UK workforce of around 1,000 employees, adding up to 200 new staff in the company and 150 roles in the wider UK defence technology sector. This expansion will strengthen the UK’s expertise in advanced defence technologies while creating well-paid, skilled employment opportunities that support economic growth.
The initiative also aligns with broader government strategies, including the Defence Industrial Strategy and Defence Digital and Data Strategy. Palantir will provide technical support for software deployment within UK Defence, enabling UK-developed software to reach US and global markets. Additionally, the partnership will foster a data-centric MOD, ensuring that personnel across all levels can access and utilize critical data securely and efficiently to enhance operational capabilities.
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