UK signs strategic defence partnership with Palantir to drive AI innovation

The UK has signed a new strategic partnership with Palantir, aiming to unlock up to £1.5 billion of investment in defence technology and cement Britain’s position as a global hub for military innovation.

Palantir will make London its European headquarters for defence, creating up to 350 highly skilled jobs and supporting British firms across the defence technology supply chain.

The collaboration will focus on developing AI-powered systems that accelerate military planning and targeting - tools already proven in Ukraine to speed up battlefield decision-making. At the heart of this effort is the development of the UK’s Digital Targeting Web, part of the Strategic Defence Review, which will integrate diverse data sources to give commanders faster and more accurate options.

Defence Secretary John Healey  described the partnership as a “major vote of confidence in UK leadership in defence, data and AI technology.” He added: “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 jobs and making defence the leading edge of innovation in NATO.”

Beyond direct investment, Palantir will mentor British defence SMEs and start-ups, helping them expand into US and international markets. The partnership is expected to open opportunities worth up to £750 million within UK Defence over the next five years.

The deal also builds on the recently announced Tech Prosperity Deal between the UK and US, strengthening transatlantic cooperation in digital and defence innovation.