Shares of Palantir Technologies Inc. (NASDAQ:PLTR) climbed 1.58% in Thursday pre-market after it signed a strategic deal worth billions with the U.K. government.
Palantir To Invest $2 Billion, Boost UK Defense Jobs & AI
The new partnership will see Palantir, investing up to £1.5 billion ($2 billion) in the UK, establishing the nation as its European headquarters for defense. This move is expected to generate up to 350 new high-skilled jobs, solidifying the U.K.’s position as a cutting-edge defense technology hub.
Palantir will work with the U.K. military to develop AI-backed capabilities, already tested in Ukraine, to expedite decision-making, military planning, and targeting. This investment is set to position the UK as a leader in defense innovation and create new jobs, thereby driving growth.
U.K. Defence Secretary John Healey announced a partnership to provide the military with advanced digital tools and AI technology, aiming to improve decision-making, targeting, and overall security against emerging threats.
Palantir’s CEO, Alex Karp, expressed the company’s deep commitment to the U.K., announcing an investment of up to £750 million ($1 billion) in advanced AI-enabled defense technology. Proven in Ukraine and used by the U.S. and NATO, this technology will strengthen the U.K.'s role as a key military force protecting the West.
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Palantir Faces Salesforce Challenge, Trump’s UK Visit
This move comes at a crucial time for Palantir, which is facing its first real threat in the defense sector. Salesforce (NYSE:CRM) recently announced its new national security division, Missionforce, and secured a significant U.S. Army contract, challenging Palantir’s long-standing dominance in the government-grade AI software market.
Despite this, Palantir’s stock has been on a rally, with its market cap reaching $396 billion, leading to comparisons with Cisco’s dot-com boom. The new partnership with the U.K. government is a strategic move to solidify its position in the defense sector and expand its influence in Europe.
Notably, President Donald Trump is in the U.K. for his unprecedented second state visit, welcomed with royal ceremony. Coinciding with the visit, U.S. tech firms revealed £31 billion ($42 billion) in U.K. investments, including £22 billion ($30 billion) from Microsoft Corp (NASDAQ:MSFT). and £5 billion ($6 billion) from Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), targeting artificial intelligence, quantum computing, and nuclear energy.
According to Benzinga Edge Stock Rankings, Palantir has a growth score of 85.74% and a momentum rating of 93.32%. Click here to see how it compares to other leading tech companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
