France’s domestic intelligence agency pulled Palantir, switching to Chaps Vision. Prime Minister Sébastien Lecornu said the change supports European tech sovereignty and follows U.S. restrictions on Anthropic. This shift follows months of debate over data sovereignty and the U.S. government’s recent restrictions on foreign access to AI models.

The switch follows a €655 million AI investment pledge through 2030 and a plan to grant civil servants an AI assistant powered by Mistral. Palantir’s decade‑long contract with the DGSI remains in force for several more years, according to the company. This contract covers surveillance, data analytics, and threat assessment across France’s security apparatus.

Other European intelligence services have mirrored France. Germany chose Chaps Vision last month, while the UK saw Palantir deals face scrutiny. Palantir’s £330 million NHS contract and London mayor vetoed deals show rising caution. These moves heighten pressure on U.S. firms to adapt to stricter European oversight and could trigger a reevaluation of data governance standards.

The decision underscores pressure on U.S. tech giants and may reshape defense‑data contracts across the bloc. French officials say independence protects democratic values. The shift could prompt more EU agencies to adopt local vendors. As a result, contractors may need to align their compliance frameworks with EU data protection laws, potentially raising costs for foreign suppliers.