Palantir Expands U.K. Defense Operations With New AI Partnership

Palantir Technologies Inc. (PLTR, Financials) is increasing its focus on the United Kingdom with a new artificial intelligence partnership aimed at expanding its defense business. The company views the U.K. as a faster-moving market compared with continental Europe, where defense spending and adoption of AI systems have slowed.

Louis Mosley, head of Palantir's U.K. operations, said the company plans significant investment to strengthen its presence. Palantir has already committed 1.5 billion ($2 billion) to the region and is finalizing a 750 million, five-year contract with the Ministry of Defence. The company now employs nearly 1,000 people in London, making it its second-largest office worldwide.

The U.K. has become one of Palantir's key growth markets, contributing roughly 10% of total revenue. However, CEO Alex Karp said during the firm's latest earnings call that many European governments have been slow to adopt AI-based defense solutions, describing the region's pace as stagnant.

Still, Palantir has found opportunities elsewhere in Europe. In October, it signed a defense agreement with Poland to enhance analytics, cybersecurity, and battlefield communications, though financial details were not disclosed.