Shares of Palantir Technologies fell 3.5% to $129.99 Tuesday after French Prime Minister Sébastien Lecornu announced that the DGSI, France's domestic intelligence agency, has ended a decade-long contract with Palantir to work instead with French startup ChapsVision. The move lands just six months after Palantir renewed the DGSI contract in December 2025 — making the reversal strikingly abrupt and politically driven.
A Sovereignty Decision, Not a Performance Problem. Lecornu pitched the switch as an attempt to "build real autonomy" and avoid dependencies on partners with the ability to cut access to AI tools.
The announcement comes days after US AI lab Anthropic restricted access to some of its best-performing models under US government orders, renewing European fears of a "digital kill switch." For shareholders, the implication is unsettling: Palantir's product wasn't rejected for being bad — it was rejected for being American.
France Is Not Alone — Germany and Switzerland Are Walking Away Too. Last month Germany's domestic intelligence agency also announced it is picking ChapsVision over Palantir , and Germany has ended military use of Palantir, while the UK is reviewing major contracts amid political and security concerns. Switzerland dropped Palantir earlier this year for the same reasons. This is no longer one lost contract — it is a pattern that threatens the company's entire European government pipeline.
The Financial Dent Is Small, but the Signal Is Loud. The UK remains Palantir's largest non-US market at $427 million in 2025, about 9.5% of total revenue , while standalone France revenue reporting was discontinued after 2021. The DGSI contract itself is modest relative to Palantir's $1.63 billion in Q1 2026 revenue and trailing twelve-month sales of $5.22 billion. But Palantir trades at a massive premium to those sales — so what matters isn't today's lost euros, it's whether a wave of European government exits chips away at the growth story investors are paying up for.
€655 Million in French AI Spending — and Palantir Won't Get a Cent. France announced a €655 million investment in artificial intelligence and a shared chatbot for all state services — spending explicitly earmarked for domestic providers. The commitment signals that digital sovereignty is moving from political rhetoric into procurement policy , creating budget pools Palantir cannot access. For a company whose growth engine is overwhelmingly US-driven — Palantir's 56.2% revenue growth in 2025 was overwhelmingly tethered to US government and commercial expansion — Europe's doors closing further concentrates risk in a single geography.