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Original article: España pone freno a Palantir: temor por datos sensibles y defensa golpea a la tecnológica de Peter Thiel

The Government of Spain has ordered state-owned companies to prohibit contracting with Palantir Technologies, the U.S. artificial intelligence giant specializing in big data, particularly within the defense sector, co-founded by Peter Thiel. This decision aims to safeguard confidential information related to national security.

The decision by Pedro Sánchez’s administration arises from concerns that the Miami-based multinational company, with strong ties to Donald Trump’s White House, might access sensitive data from the European nation. The directive is clear: prevent «any contracts with Palantir Technologies that could jeopardize national sovereignty,» as revealed by sources consulted by El Confidencial.

The worries raised by this issue extend beyond technology, impacting politics, geopolitics, and national security directly. Central to the debate are critical questions: who controls the software, where data is stored, what level of dependency is created, and what risks arise if an essential tool comes from a company deeply connected to the U.S. defense ecosystem.

The focus shifts to companies within the public or strategic perimeter. El Confidencial mentions Telefónica, Indra, and Navantia, all significant players in sensitive national sectors under the umbrella of the State Industrial Holding Company (SEPI). While Telefónica is crucial in communications, Indra excels in defense, technology, simulation, critical systems, and military intelligence, and Navantia is renowned for military shipbuilding.

In this business landscape, the SEPI holds a prominent position. Hence, the directive from La Moncloa transcends a mere hiring decision; it directly touches on industrial policy, defense, and control of strategic assets.

According to El Confidencial, Palantir had engaged in discussions to develop projects with various public sector organizations and companies but these did not materialize. However, the company already maintains an active relationship with the Ministry of Defense. In fact, it has been awarded a contract with the Armed Forces Intelligence Center (part of Defense), aimed at providing intelligence fusion and analysis solutions within the Armed Forces Intelligence System.

The aforementioned agreement, formalized in 2023, amounts to €16.54 million and is set to expire in November. The significant question now is whether the Government will opt to extend its duration, expand its scope, or replace it with alternatives perceived as more aligned with both Spanish and European technological sovereignty.

According to the aforementioned media, high military officials have defended the continuation of this partnership to Defense, citing the high quality of software that Palantir provides. However, the political resolution is still not defined and remains pending closure.

Spain Follows France and Germany’s Stance Against Palantir

Spain is following the lead of its European partners. On June 16, French Prime Minister Sébastien Lecornu announced that the General Directorate for Internal Security (DGSI) had selected the French company Chaps Vision to replace Palantir.

«Since we cannot rely on tools developed by foreign powers, France must have its own,» Lecornu stated, emphasizing that what was at stake was «the protection of democratic values.»

Germany has also rejected Palantir within its military cyber branch for failing to meet its requirements, searching for alternatives. In light of this European front, Palantir asserts its ambition to strengthen local capabilities and defends its cooperation at high-security standards, yet Moncloa’s decision reveals that its guarantees have not sufficed.

Impacts on Peter Thiel’s Tech Company

The ban strikes a blow to Peter Thiel’s tech company, a controversial figure in Silicon Valley, co-founder of PayPal, investor in Facebook, and a reference for the new American right, closely tied to Trump. Palantir transcends the category of a software firm and is viewed as a key component in the technological power dynamics in the U.S., linked to defense, intelligence, and the «Trumpist» core.

This resolution occurs within a particularly tense context in bilateral relations between Spain and the administration of the Republican mogul.

Pedro Sánchez has openly expressed his rejection of Trump’s foreign policy, particularly regarding the Middle East. Additionally, the newly arrived U.S. ambassador to Madrid, Benjamin León Jr., has publicly complained about the lack of reception from the Spanish Government president.

In this scenario, Palantir takes on a significance that extends beyond commercial implications, embodying a concerning technological dependency tied to the political and military power of Washington. Thus, Spain’s decision represents a new step toward reinforcing technological autonomy in sensitive areas, amid growing European concerns about dependence on foreign suppliers for critical data and infrastructure.

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