France ends cooperation with US firm Palantir, invests in domestic AI

France's domestic intelligence agency, the DGSI, is severing ties with the controversial U.S. company Palantir as part of a broader strategy to achieve greater independence in artificial intelligence. Prime Minister Sébastien Lecornu announced that France will invest 655 million euros to develop an alternative, in-house AI system.

"We can no longer accept new strategic dependencies in the digital domain," Lecornu stated in a video message, underscoring the government's commitment to national sovereignty in technology. This move comes shortly after U.S. authorities restricted access to powerful AI models like Fable 5 and Mythos 5 for users outside the United States, a decision that has fueled calls for greater autonomy in AI development within France.

The DGSI's decision to end its collaboration with Palantir, a company known for its data analytics and AI software used by government agencies and corporations, signals a significant shift in France's approach to AI procurement and development. The substantial investment planned by the French government aims to build indigenous capabilities, reducing reliance on foreign technology providers, particularly from the U.S.

This strategic pivot reflects growing concerns among European nations about technological dependence on the U.S. and China. By investing heavily in its own AI infrastructure, France seeks to bolster its national security, economic competitiveness, and technological leadership on the global stage, ensuring that critical digital functions remain under national control.

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We can no longer accept new strategic dependencies in the digital domain.