Palantir Stock Jumps 4.7% After Report Co to Invest 1.5 Billion Pounds in the UK

The United Kingdom and Palantir Technologies entered a partnership that would see an investment of up to £1.5B in the U.K. to deliver new jobs, growth and national security.

Shares of Palantir jumped 4.7% on the news.

U.S.-based Palantir plans to make the U.K. its European headquarters for defense and create up to 350 new high-skilled jobs. London will become the base for Palantir’s European defense business. In addition, Palantir and the U.K. military will develop AI-powered capabilities, which are already tested in Ukraine, to speed up decision making, military planning, and targeting.

On Wednesday it was reported that Palantir was going to sign a deal worth about $1B (£750M) with the U.K. military as part of President Donald Trump's visit to the country.

"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 defense the leading edge of innovation in NATO," said U.K.'s Defence Secretary John Healey.

Palantir and the U.K. military will work together to transform lethality on the battlefield, supporting the development of data and AI-powered capabilities across data analysis, intelligence, decision support and targeting systems.

The parties said that some of the new capabilities will support development of what is known as the ‘kill chain’ wherein military planners fuse a range of information and data sources from open- source and military platforms to provide military commanders with faster options for attacking an enemy target.

The partnership will identify opportunities with U.K. Defense, which could be worth up to £750M over the next five years, according to the press release by the British government.

"This partnership reflects our deep commitment to the UK. It will see up to £750m invested in the most advanced AI-enabled defense technology, honed on the battlefield in Ukraine and used extensively by the US and NATO," said Palantir's CEO Alex Karp.

Palantir has committed to hiring up to 200 new U.K. staff and up to 150 jobs in the broader U.K. defense technology sector to deliver Ministry of Defence programs.