France Drops Palantir for Domestic AI, Plans €655M Investment

France's domestic intelligence agency DGSI has ended its contract with U.S. data analytics firm Palantir Technologies, opting instead for French competitor ChapsVision, Prime Minister Sebastien Lecornu announced Tuesday.

The decision marks the latest example of European governments distancing themselves from American technology providers, particularly Palantir, whose military-grade AI and data integration tools have become controversial across the continent. Founded by billionaire Peter Thiel with early CIA backing, Palantir serves government and corporate clients worldwide.

Why it matters

This shift reflects a fundamental reassessment of technology sovereignty in Europe. As geopolitical uncertainty grows—amplified by questions about U.S. reliability under unpredictable leadership—European nations are prioritizing control over critical digital infrastructure. For technology vendors, the message is clear: national security agencies increasingly view foreign dependencies as unacceptable risks, regardless of technical capabilities or existing relationships.

Strategic independence over foreign tools

"We must use our own AI models; we cannot accept new strategic dependencies in the digital sphere," Lecornu said in a video posted on social platform X. "We cannot rely on tools developed by foreign powers. France must have its own tools."

The move comes as European allies increasingly question whether long-standing U.S. support in security and technology remains dependable. President Donald Trump's unpredictable approach to international relations has accelerated these concerns.

Broader European retreat from Palantir

France's decision follows similar actions across Europe. Germany's military has announced it will discontinue Palantir use. Britain is reviewing the National Health Service's £330 million ($440 million) data contract with the company following political and parliamentary pressure.

London Mayor Sadiq Khan recently blocked a proposed £50 million Palantir contract with the capital's police force, citing value-for-money and procurement concerns. Palantir responded by threatening legal action.

The scrutiny extends beyond Palantir. Last week, Anthropic said it would "abruptly disable" its most advanced AI models for all users after the U.S. government ordered the exclusion of foreign nationals from access, citing national security concerns.

France's €655 million AI investment

Alongside the contract switch, Lecornu announced France plans to invest €655 million ($760 million) in artificial intelligence development. The initiative includes creating a shared chatbot for all state services, a public health chatbot for state-owned health insurance agency Ameli, and a new digital platform to simplify access to public data.

Neither Palantir nor ChapsVision immediately responded to requests for comment on the contract termination.

These details were first reported by Reuters.