France's domestic intelligence service, DGSI, has decided to replace Palantir's data analytics tools with a French company called ChapsVision. This marks a significant move away from US technology in Europe’s sensitive government sectors. The announcement came from French Prime Minister Sébastien Lecornu on June 16, highlighting a strategic push to reduce dependency on American tech firms.
Interestingly, this transition began shortly after Palantir renewed its contract with DGSI in December 2025, showing a swift policy reversal. While Palantir earned $4.5 billion in 2025, ChapsVision, founded just in 2019, brought in €200 million that same year. Despite the vast revenue difference, European agencies are favoring homegrown solutions.
Germany’s intelligence agency is following suit, opting for ChapsVision over Palantir as well. The two countries also announced a joint effort to develop domestic alternatives to US intelligence platforms, with France’s Arcadia AI system being one such contender. Palantir maintains that its DGSI contract is still active and expects a multi-year phase-out period to ensure uninterrupted capabilities during the switch.
This shift could reshape the European intelligence technology market. Although the DGSI contract accounts for a minor slice of Palantir’s overall revenue, the growing preference for local firms by France and Germany might inspire other EU nations to follow. With 27 EU member states requiring advanced data analytics, the potential impact on Palantir's European business is substantial.
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