Karp: French tech sovereignty push harms Europe's competitiveness

Palantir's CEO argued that France's move to limit US software in government is counterproductive, following the DGSI's switch to domestic provider ChapsVision. He said Europe's regulatory environment undermines competitiveness and that sovereignty decisions should be made by technical experts. Karp also criticized contracting non-US firms that still rely on American or Chinese models.
ChapsVision, founded in 2019, reported roughly €200 million in annual revenue, a fraction of Palantir's $4.5 billion. Despite the DGSI's decision, Palantir's existing contract remains active while ChapsVision's replacement tool completes development, a process expected to take several months, according to a French security source.
Palantir has long drawn criticism from European rights groups over its mass surveillance tools, facial recognition work, and U.S. government contracts. Co-founded by Peter Thiel after the September 11 attacks, the company has also faced accusations regarding Israeli targeting operations in Gaza.
This dispute highlights a growing tension between European data sovereignty efforts and the practical realities of technological dependence. Government agencies may face operational risks during transitions, while smaller domestic providers must prove they can match established capabilities. The outcome could influence how other European nations approach similar procurement decisions, potentially reshaping the competitive landscape for defense and intelligence software across the region.