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  • Writer's pictureAmit Kukreja

Palantir's Newest $91M Deal With The UK

Six deals in the past two weeks.

This deal is unlike each of the precious deals we have seen in quite some time!

An international governmental deal. We've seen a lot of government deals with the United States over the past couple months, we've seen a lot of commercial deals, some of them International but most of them in the United States. This is finally when we're blending the two, an international governmental deal valued at 75 million pounds or 91 million dollars for my US based audience.

The UK Ministry of Defense (MOD) has decided to sign a three year contract to get access to Palantir’s toolset.

The partnership will support the MOD's digital transformation as it becomes a world leading agile force for the future. Spearheaded by Defense Digital, and powered by Palantir, the digital transformation will see the MOD treat data as a strategic asset. Harnessing its power to deliver Superior military advantage and greater efficiency across the enterprise from headquarters to the front lines.

The entire goal of what Palantir ries to do with any organization, give them data-driven decision making capabilities to truly exploit data at scale and speed to make faster and better decisions.

The agreement will enable any part of the UK defense to gain access to palantir software across multiple classifications wherever and however it can help turning the mod's digital vision into reality.

Director Chief data of the Defense Digital, Caroline Bellamy said:

“As a strategic partner in a complex Defense Data ecosystem, Palantir products and services are helping defense to become a truly integrated digital enterprise, with data exploitation at the heart of a faster, better, and more integrated defense. A defense where real-time, interconnected data better informs decision making, our people are digitally connected and empowered, and step changes in digital capacity have been made for our war fighters across all business operations.”

Mission critical use cases obviously matter when it comes to the Department of Defense. The variety of use cases in which their software can be implemented and having palantir be the backbone of that is important.

All Palantir users can adopt the platform to suit their needs. Palantir offers a variety of no code/low code applications democratizing access to data and leveling up MOD users.

If you're not a technical person, obviously you can't use complex software. The beauty of Palantir is that you don't need to have technical expertise. It's like dragging and dropping analytical tools that are needed for whatever objective you have.

There will be a learning curve as with any software, but as a result anyone across any department in an organization can access the software. Improving their decision making skill sets.

Guy Williams, Head of UK Defense and National Security at Palantir said:

“Palantir’s Enterprise Agreement with the MOD will accelerate the UK Armed Forces’ journey to become a truly integrated force. We're proud to expand our long-standing relationship with the MOD through our partnership with Defense Digital, and look forward to delivering world-leading software capabilities to enable greater operational outcomes.”

Palantir has a very strong presence in the UK.

They have the most employees in their UK headquarters. This deal is solidifying more of the presence in the UK. As a result of solidifying more of the presence in the UK, this gives them the ability to get other deals in the United Kingdom as well, likely aiding in consideration for that $400 million NHS deal on the table.

Palantir has been honest about the fact that they have not been doing well internationally, they've not been scaling internationally, especially in the governmental sector. A variety of reasons for this, one of the main reasons that CEO Alex Karp talked about is that UK and European leaders of governments and heads of state are a little bit less ready to adapt to the changing world.

This deal gives you a little bit more hope that they're finding ways to get established. And as we know, once customers get contracts with Palantir and experience their software, they often renew new larger deals upon expiration.

This revenue coming in is good, but the real value is coming from building these relationships for the long term. 75 million pounds for three years is great, but in 2026 when this is over, can that be 400 million for the next six years because the value has been cemented?

Time will tell, but for now Palantir is making amazing inroads within the UK.

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