Palantir Technologies, an American company specializing in big data analytics and artificial intelligence, has been awarded a £240 million contract by the UK Ministry of Defense (MoD). The agreement, signed in December 2025, is the largest defense contract for a foreign company in the history of the United Kingdom in the field of software and data.
The contract is for three years (April 2026 to March 2029) and provides Palantir with data analytics platforms that support real-time strategic, tactical, and operational decision-making at all classification levels. The company’s technologies will help modernize the UK armed forces by integrating data to improve operational efficiency, including interoperability with NATO and allied systems.
This agreement is three times larger than Palantir’s previous contract with the MoD from 2022 (£75 million) and is a continuation of the strategic partnership announced in September 2025. At that time, Palantir committed to investing up to £1.5 billion in the UK economy, creating 350 new jobs, and making London its European headquarters for defense technology and AI.
The Ministry of Defense emphasized that Palantir is the only supplier capable of providing the necessary capabilities without significant costs to rebuild existing systems. All data remains under the control of the MoD and is stored in the UK.
However, the deal has sparked debate about the UK’s dependence on American technology. Critics, including former Defense Secretary Ben Wallace and opposition politicians, have expressed concern about foreign companies being prioritized over British ones. In addition, Palantir’s ties to the Donald Trump administration and its work in other countries have raised questions about privacy and ethics.
Palantir has a long history of working with British authorities, including contracts with the NHS and the police. The new deal strengthens the company’s position in Europe and highlights the growing role of AI in modern defense.