Palantir CEO Alex Karp has a blunt message for Europe, and it is not a warm one: artificial intelligence, in his view, is a two-horse race between the United States and China, with Israel as a minor exception—and Europe is not on the track. Worse, he argues, the continent keeps turning down the people offering to help it get there. The critique carries extra weight because Palantir, the data-analytics software company Karp co-founded and leads, has real money riding on the continent, with its European business under pressure at the very moment its US operations are booming.

The Critique

Throughout 2026, Karp has used a series of public appearances to fault Europe's handling of AI. His central argument is that the region suffers from structural problems in adopting the technology, with regulatory caution and bureaucratic resistance as the main obstacles. In his view, those forces block meaningful AI deployment and undercut Europe's own goal of technological sovereignty—the capacity to build and control critical technology at home rather than depending on foreign providers.

The contrast he draws is stark: the US and China are scaling AI aggressively while Europe deliberates. The backdrop to his complaint is a regulatory-first European approach to AI, embodied in the EU AI Act that entered into force in 2024 with its core obligations phasing in through 2026 and 2027—the kind of rule-making Karp argues comes at the cost of deployment. His most quotable line came in October, when he summed up his frustration with Europe's reluctance to embrace AI initiatives.

“You can't help someone who doesn't want to be helped.”

Karp frames the gap less as an ideological standoff than as a shortfall in technical execution and competence. He has also pushed back on the idea that the US should borrow Europe's regulatory playbook, advocating instead for alliances with leading technology providers to strengthen AI capabilities.

For Europe itself, Karp has pointed to a different model: pragmatic partnerships along the lines of France's nuclear program. The comparison suggests he sees state-backed, industrial-scale collaboration as the path forward, rather than rules written first and deployment later.

A European Business Under Strain

Karp's remarks are not abstract commentary from the sidelines. Palantir holds contracts across 11 European countries, spanning sectors including defense and healthcare, worth approximately $296 million.
That book of business has begun to show cracks. Karp has acknowledged that Palantir has seen contracts go unrenewed and has watched some customers move toward local providers.

The most visible example came from France. In June 2026, the country's domestic intelligence agency, the DGSI, ended its contract with Palantir in favor of a domestic alternative. French firm ChapsVision has emerged as one of local competitors pressing Palantir in that market.

The French decision did not stay contained. It prompted similar reassessments of Palantir partnerships in the UK and Germany amid growing concerns about sovereignty.

The irony is hard to miss: Karp criticizes Europe for lacking technological sovereignty, while European governments cite sovereignty as the reason to replace his company.

A Pivot East

Not every European capital is cooling on Palantir. Karp has suggested that eastern European countries, including Lithuania and Poland, appear more open to working with the company. In a September 2026 meeting, he engaged with officials from those countries to discuss potential collaborations on AI and defense. The openness of those capitals stands in contrast to the reassessments under way in France, the UK, and Germany.

The Transatlantic Split in Palantir's Numbers

The tension in Europe stands out even more against Palantir's performance at home. The company's US business has posted a reported 93% revenue increase in 2026. European growth, by comparison, has been sluggish, and the region has been a disappointment relative to the momentum the company is enjoying in its domestic market.

What This Means

For Palantir, the picture splits neatly in two. The US story is one of strong growth, while Europe presents a growing risk around contract renewals and future engagement. The approximately $296 million in European contracts is the figure to track: renewals, non-renewals, and any new eastern European deals will show which direction that number moves. The French termination and the reassessments that followed have already put parts of that figure in question.

The broader stakes extend beyond one company. Europe is trying to build AI capacity without ceding control to American or Chinese providers, and local firms like ChapsVision are the early beneficiaries of that push. Karp is betting that approach slows Europe down. European governments are betting that dependence on foreign vendors is the bigger long-term risk. Which bet pays off first should become visible in contract decisions over the coming quarters.

This article is based on reporting first published by CryptoBriefing.