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German States Limit Palantir Contracts as Federal AI Deployment Review Advances

Its 48 percent year-on-year revenue growth has strengthened the company’s position in Germany’s AI analytics market.

Overview

  • The four pilot states have refined their Palantir deployments: Bavaria and Hesse continue active use, Baden-Württemberg formalised its launch and North Rhine-Westphalia capped its contract at one year pending a European alternative.
  • Interior Minister Alexander Dobrindt is reviewing proposals for a nationwide rollout despite objections from SPD, Greens and Left over U.S. intelligence ties and sovereignty concerns.
  • The Gesellschaft für Freiheitsrechte and Chaos Computer Club have filed constitutional complaints challenging state use of Palantir on privacy and digital-sovereignty grounds.
  • Palantir reported a 48 percent year-on-year revenue surge to over $1 billion last quarter, reinforcing its global AI-driven analytics expansion.
  • With no competitive European alternative ready, states are balancing urgent security needs against calls for fundamental-rights protections and digital sovereignty.