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The UK Ministry of Defense (MoD) paid US software company Palantir £186 million more over the decade to March 2026 than the recorded value of its publicly listed contracts, according to a Financial Times analysis of official documents.
While the MoD publishes Contract details totaling £95.9 million over the ten-year period, actual expenditure reached £282 million. This significant discrepancy is attributed in part to at least one contract being withheld for national security reasons, although it remains unclear whether classified agreements account for all of the difference.
The findings are likely to fuel growing political scrutiny around trust in the UK public sector foreign tech suppliers. Palantir, whose data analysis software is used by the MoD for operational planning, has faced criticism from lawmakers regarding its links to the US defense sector and Donald Trump’s administration.
Chief Executive Alex Karp has previously defended those connections, claiming the company’s software is designed to strengthen Western democratic institutions.
Adding to liability concerns, the FT’s analysis revealed that more than 80 percent of the £282 million paid to Palantir occurred through non-competitive procurement processes.
Notably, the The MoD has bypassed a competitive tender for a three-year software contract Worth £240.6 million as of April 2026, arguing that Palantir holds unique technical expertise and design familiarity.
Dame Chi Onwurah, Labor MP and Chair of the House of Commons Science and Technology Committee, criticized the lack of openness. “The fact that it is so difficult to know what the Department of Defense is spending on Palantir and that there is so little competitive bidding fails the transparency, accountability and therefore public trust test,” she said.
Procurement experts note that defense agencies often operate under disparate rules, where certain contracts are legally withheld to protect national capabilities that mask true spending and standard data tools. The MoD has defended its record, saying it remains committed to transparency and that all expenditure is properly disclosed in official records within the confines of national security legislation. Palantir declined to comment, citing security restrictions.
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