US defense tech firms Palantir and Anduril struggle to gain foothold in European market despite Ukraine war opportunity
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Palantir and Anduril, two major US defense tech firms, have struggled to break into the European defense market despite increased military budgets after Russia's invasion of Ukraine. European countries prefer local suppliers and have concerns about data privacy and sovereignty.
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The companies initially saw opportunity in the Ukraine war, providing drones, software, and other tech for free or at low cost. But the work has not led to significant revenue or contracts with other European militaries so far.
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Palantir faces criticism over its data mining practices and has run into restrictions in Germany over privacy concerns. Anduril has reshuffled leadership after lackluster European traction.
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With modest revenue from European allies, both companies are looking to Asia and the risk of conflict in Taiwan as the next area of focus. Anduril's Luckey draws parallels to missing opportunity in Ukraine.
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Still, Anduril and Palantir say they remain committed to the European market through efforts like local hiring, manufacturing, and adapting products to allies' needs around sovereignty.