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France Drops Palantir for Domestic AI Firm in Intelligence Contract Shift

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France's domestic intelligence agency DGSI has terminated its decade-long partnership with Palantir, opting instead for French startup Chaps Vision to handle critical data analysis services. Prime Minister Sébastien Lecornu framed the decision as building 'real autonomy' and avoiding strategic dependencies on foreign technology providers that could cut access to AI tools.

The move follows mounting concerns about relying on US-based systems for sensitive government data. DGSI first contracted Palantir in 2016 despite privacy worries, renewing the agreement twice before beginning the search for homegrown alternatives in 2020. Chaps Vision, founded in 2019, has rapidly scaled to over 1,000 employees and generated nearly €200m in revenues last year, making it a viable domestic replacement.

Germany's domestic intelligence agency recently made a similar switch, selecting Chaps Vision over Palantir to reduce dependence on American technology. These decisions come amid heightened tensions following US AI lab Anthropic's abrupt suspension of foreign access to its models, reigniting fears of a 'digital kill switch' where critical technologies could be revoked.

Lecornu also announced €655m in AI funding through France 2030, redirecting existing investments toward compute infrastructure, startups, and research. The contract shift signals Europe's growing push for technological sovereignty amid increasing reliance on US cloud and AI services.