The UK Ministry of Defence (MoD) paid US software firm Palantir £186 million more over the decade up to March 2026 than the recorded value of its publicly listed contracts, according to a Financial Times analysis of official documents.

While the MoD published contract details totalling £95.9 million over the ten-year period, actual spending reached £282 million. This significant discrepancy is partly attributed to at least one contract being withheld for national security reasons, though it remains unclear if classified agreements account for the entire difference.

The findings are likely to amplify growing political scrutiny surrounding the UK public sector’s reliance on . Palantir, whose data analytics software is utilised by the MoD for operational planning, has faced criticism from lawmakers regarding its ties to the US defence sector and Donald Trump’s administration.

Chief executive Alex Karp has previously defended these connections, maintaining that the company’s software is engineered to bolster Western democratic institutions.

Further adding to accountability 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 MoD bypassed a competitive tender for a three-year software contract worth £240.6 million starting in April 2026, arguing that Palantir holds unique technical expertise and design familiarity.

Dame Chi Onwurah, Labour MP and chair of the House of Commons science and technology committee, criticised the lack of openness. “The fact that it is so difficult to know what the Ministry of Defence is spending on Palantir and that there is so little competitive tendering taking place, fails the transparency, accountability and therefore the public trust test,” she said.

Procurement experts noted that defence bodies often operate under distinct rules where certain agreements are legally withheld to protect national capabilities, masking true outlays in standard data tools. The MoD defended its record, stating it remains committed to transparency and that all outlays are properly disclosed in official records within the bounds of national security legislation. Palantir declined to comment, citing security constraints.

For latest tech stories go to TechDigest.tv