Palantir Technologies Inc. (NYSE: PLTR) plans to make "significant investments" in the UK to secure military contracts, according to its UK executives, despite the software company's previous complaints about sluggish progress in European markets.
"Britain is poised to become a core hub for defense and military technology R&D," said Louis Mosley, Palantir's UK head. "The country has all the critical elements needed to achieve this goal."
Like most European nations, the UK has outlined plans to boost military spending and equip its armed forces with advanced technologies such as autonomous drones and AI software. Earlier this year, Palantir committed to investing £1.5 billion (approximately $2 billion) in the UK and is currently finalizing details of a new £750 million, five-year contract with the UK Ministry of Defence.
Driven by surging global defense budgets and the AI boom, Palantir's stock has attracted significant attention on Wall Street, with shares experiencing sharp rallies. Last year, the company secured a contract with the US Department of Defense to provide software for battlefield target identification and intelligence gathering.
Recent short-selling by prominent hedge fund manager Michael Burry caused a dip in Palantir's share price. However, as of Wednesday's close, the stock remains up over 143% year-to-date.
The UK market accounts for roughly 10% of Palantir's revenue. The company's contracts with Britain's National Health Service (NHS) have previously sparked controversy.
European nations have been more cautious about adopting Palantir's tools, primarily due to privacy concerns and political sovereignty issues. During last week's earnings call, CEO Alex Karp told investors, "Our growth is being hampered by stagnation in Europe, which remains a significant part of our business."
In October, Palantir signed a preliminary agreement with Poland's Ministry of Defence, though terms were not disclosed.
Mosley noted that Palantir currently employs about 1,000 staff in London, making it the company's second-largest global office. "The UK is Europe's preeminent military power," he said. "I believe Britain has the potential to become a critical bridge to the rest of Europe."