French domestic spy agency ditches Palantir for local rival, PM says - Finance news and analysis from Global Banking & Finance Review
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French domestic spy agency ditches Palantir for local rival, PM says

Published by Global Banking & Finance Review

Posted on June 16, 2026

3 min read

· Last updated: June 16, 2026

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France's DGSI Drops Palantir for ChapsVision in Strategic Tech Shift

French Intelligence Agency's Technology Transition and Its Broader Implications

DGSI Ends Palantir Contract in Favor of ChapsVision

PARIS, June 16 (Reuters) - The French domestic intelligence agency DGSI has decided to terminate its contract with the U.S. tech firm Palantir in favour of a French rival, ChapsVision, Prime Minister Sebastien Lecornu said on Tuesday.

European Concerns Over U.S. Tech Dependencies

The move reflects growing wariness by European governments about dependency on U.S. tech platforms, and particularly on Palantir Technologies' suite of products. Founded by billionaire Peter Thiel with backing from the CIA, Palantir sells military-grade AI data integration tools to governments and businesses.

French Government's Stance on Digital Sovereignty

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

Palantir and ChapsVision did not immediately respond to requests for comment.

International Reactions and Policy Shifts

Impact of U.S. Political Uncertainty

U.S. President Donald Trump's unpredictability on the global stage has led European allies to question whether decades of U.S. support in areas including security and technology can still be taken for granted.

Other European Actions Against Palantir

Palantir has been among the U.S. tech firms most affected, although last week Anthropic said it ​would "abruptly disable" its most advanced AI models for ⁠all users after the U.S. government ​ordered it to exclude foreign nationals from access, citing national security concerns.

Germany and the United Kingdom's Response

Germany's military has said it will no longer use Palantir, while Britain is reviewing the National Health Service's £330 million ($440 million) data contract with Palantir following political and parliamentary pressure.

London's Rejection of Palantir Contracts

London Mayor Sadiq Khan also blocked a proposed £50 million Palantir contract with the capital's police, citing value-for-money and procurement grounds. Palantir threatened legal proceedings in response.

France's Investment in AI and Digital Infrastructure

Lecornu said France plans to invest €655 million ($760 million) in artificial intelligence, and set up a shared chatbot for all state services.

It will also create a public health chatbot for the state-owned health insurance agency Ameli, and a new digital platform to simplify access to public data. ($1 = 0.8638 euros)

($1 = 0.7452 pounds)

(Reporting by Inti Landauro and Sam Tabahriti;Editing by Sudip Kar-Gupta, Gabriel Stargardter and Kevin Liffey)

Key Takeaways

  • France’s DGSI drops Palantir for ChapsVision to bolster AI sovereignty and reduce foreign tech dependency. (reddit.com)
  • ChapsVision, founded in 2019 and valued at over €200 million turnover in 2024, has positioned itself as a sovereign alternative through aggressive acquisitions and a strong AI portfolio. (chapsvision.fr)
  • This move reflects a broader European trend: several governments—including Germany—are reevaluating or terminating contracts with U.S. defense‑tech firms like Palantir over data sovereignty and strategic autonomy concerns. (euronews.com)

References

Frequently Asked Questions

Why did France's intelligence agency end its contract with Palantir?
France's DGSI decided to terminate its contract with US firm Palantir to reduce dependency on foreign tech and promote domestic solutions, selecting ChapsVision as its new provider.
Who is replacing Palantir for the French intelligence agency?
ChapsVision, a French tech company, will replace Palantir as the data platform provider for DGSI.
What concerns are driving Europe's move away from US tech firms?
European governments are increasingly wary of strategic dependencies on US platforms, especially for critical technologies like AI and data integration.
How is France investing in artificial intelligence?
France announced a €655 million investment in artificial intelligence and the creation of a shared chatbot for all state services.
Are other European countries reconsidering contracts with Palantir?
Yes, Germany has ended military use of Palantir, and the UK is reviewing major contracts amid political and security concerns.

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