US firm’s £1.5bn investment a major boost to UK defence sector, says John Healey

The partnership with Palantir will see the development of artificial intelligence-powered capabilities.

By contributor Rhiannon James, PA Parliamentary Editor
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Supporting image for story: US firm’s £1.5bn investment a major boost to UK defence sector, says John Healey
Defence Secretary John Healey (Jaimi Joy/PA)

A US software company’s £1.5 billion investment in the UK’s defence sector is a “major vote of confidence”, Defence Secretary John Healey has said.

Palantir has announced plans to establish the UK as its European headquarters for defence, creating 350 “high-skilled” new jobs.

The partnership will see the development of artificial intelligence-powered capabilities to speed-up decision making, military planning and targeting, the Ministry of Defence said.

It is part of a £150 billion American investment package announced during US President Donald Trump’s historic second state visit.

John Healey and Alex Karp looking at each other
John Healey with Palantir Technologies chief executive Alex Karp (Lucy North/PA)

Mr 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.”

As part of the agreement, Palantir has committed to mentoring small and medium enterprises in the UK to develop innovative products and solutions, including in AI.

Palantir chief executive Alex Karp said: “This partnership reflects our deep commitment to the UK. It will see up to £750 million invested in the most advanced AI-enabled defence technology, honed on the battlefield in Ukraine and used extensively by the US and Nato.

“It will reinforce the UK’s position as a major military force protecting the West from our adversaries. And it will underline the UK’s status as our largest presence outside of the US.”

A tactic known as the “kill chain”, whereby military planners fuse information and data sources from open source and military platforms to provide military commanders with faster options for attacking an enemy target, is expected to be developed as part of the deal.