Gate News message, April 28 — Vice Admiral Thomas Daum, Germany’s highest-ranking officer in cyber and information space, has ruled out deploying Palantir software in Germany’s flagship military cloud project, citing concerns over data sovereignty and the US firm’s operational model.
Germany’s armed forces are building a secure private cloud for data processing and AI applications. While Palantir’s Maven platform already serves NATO and several member states, including Germany, Daum emphasized that granting a private US firm access to Germany’s national database is currently inconceivable. The decision also reflects concerns about Palantir co-founder Peter Thiel’s minority stake in German drone manufacturer Stark Defense. Germany has shortlisted three candidates for the project: Almato and Orcrist (both German-based) and ChapsVision (France-based). Software testing is planned for summer 2026, with a contract award expected before year-end.
Germany’s stance reflects a broader global push for AI sovereignty. Research by Stanford’s Human-Centered AI institute shows governments worldwide are racing to reduce reliance on a small number of US-based providers. The United Kingdom has committed £500 million to a sovereign AI unit, while France and Brazil are building domestic regulatory frameworks. In February 2026, however, a State Department cable signed by Secretary of State Marco Rubio instructed diplomats to lobby against foreign data sovereignty laws, singling out the EU’s GDPR as unnecessarily burdensome.
The procurement decision comes at a challenging time for major US AI firms preparing for public listings. SpaceX’s AI division accounted for 61% of the company’s $20.74 billion in capital expenditure in 2025 while posting an operating loss of $6.4 billion. OpenAI, planning a listing as early as Q4 2026, missed internal targets for weekly active users and annual ChatGPT revenue last year as Google’s Gemini gained market share. CFO Sarah Friar has warned internally that the company may struggle to fund future computing contracts if revenue growth does not accelerate.
If other sovereign powers continue routing defense and critical infrastructure business toward domestic or European alternatives, the addressable markets these firms are selling to investors will contract significantly.
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