Ministry of Defence: Palantir Contracts

Martin Wrigley Excerpts

Tuesday 10th February 2026 Commons Chamber

[Luke Pollard]

We take vendor lock-in very seriously. We will build a more comprehensive AI framework in the Ministry of Defence; we will be using AI more frequently in more aspects of defence, just as the wider economy is doing. We want to ensure that our data sovereign. Our contract with Palantir retains the sovereignty of that data, and of decision making about the systems that the data sits on. That data resides in the United Kingdom, and no changes can be made by Palantir without the consent of the MOD. It is because we take the data issues so seriously that that is locked into the contract.

[Martin Wrigley (Newton Abbot) (LD)]

The Select Committee said that DSIT was in the loop when it came to buying things, so I challenge the Minister’s statement that it was purely the Secretary of State who made the decision about the contract. This contract with Palantir is nearly three times the value of the previous contract with it. The MOD transparency notice sets out that “only Palantir” can run the service, and that there would be a “significant cost” to changing all the analytics services, so we are entirely locked into a contract with a company that is now hiking up the price. What is the exit strategy?

[Luke Pollard]

We signed a contract with a supplier to provide a service for which there is clear military need and clear utility, in order to strengthen our armed forces. We keep all contracts, not just those with Palantir, under constant review to ensure that they are delivering what they were signed up to deliver, and we will continue to do that. We want more companies to provide AI services, so we are looking at how we can support more British AI companies to interact with defence. We recently stood up the Defence Office for Small Business Growth because there are many AI companies that are not yet defence AI companies but could be, and we are trying to make it easier for them to access defence contracts.