There is a broad rise of sovereign AI technology across the European continent. European businesses and organizations of almost every industry have adopted AI technology, including those in government, legal services, healthcare, and financial services.
However, enterprises don’t want to rely on cloud infrastructure controlled by providers from outside Europe. It is now a legal requirement for organizations to protect sensitive data by ensuring their AI systems operate entirely within European jurisdictions. Local AI infrastructure gives organizations more control over their levels of data governance and regulatory compliance.
For this reason, enterprises are increasingly seeking local AI infrastructure that aligns with General Data Protection Regulation (GDPR) and EU AI Act requirements. Nearly 62% of European organizations are seeking sovereign AI solutions. That figure rises to 76% among banking institutions. IDC projects European AI spending will reach $144.6 billion by 2028. Gartner forecasts that 75% of European enterprises will move their AI workloads to local providers by 2030.
€8 Million in Seed Funding Secured for TensorX Launch
The European agenda to build trusted local AI infrastructure has taken a significant step forward with the launch of the Irish AI infrastructure company, TensorX, which has just secured €8 million in a seed funding round led by Darius Cubed Ventures. This incredible investment marks the beginning of a plan to develop one of Europe’s largest sovereign AI inference networks and address the growing enterprise concerns regarding compliance, privacy, and data sovereignty when it comes to AI.
“Demand for sovereign AI infrastructure is outpacing supply across Europe,” said Shane Morton, founder of Darius Cubed Ventures. “We’re seeing it directly from enterprises in Germany, France, the Netherlands and the Nordics. Our €8 million investment is the opening move. There is a far bigger buildout to come, and the infrastructure partnerships we have in Ireland mean we can move at the speed this market demands.”
TensorX is already generating revenue and serving paying customers across regulated industries. Some of its most trusted customers include APEX: E3, Trade Locker, and Cor Prime. Furthermore, the company supports organizations involved in financial services, healthcare, legal services, and other compliance-sensitive sectors throughout Europe.
AI inference is the process of using trained AI models to generate content from new data and to make real-time decisions and forecasts. It is the real-time computing mechanism that powers every AI chatbot, coding assistant, and customer service agent. Now it is becoming one of the most important parts of the AI stack, which brings considerable risks to European enterprises that still allow their proprietary data to be reused or retained by third-party cloud providers.
TensorX addresses this problem head-on by running open-source AI models on dedicated Nvidia GPUs with zero data retention. That gives enterprises full control over how their data is used and where it is stored and controlled.
(From top left to right): Tim Grant, Nicole Morton, Shane Morton, Craig Donnelly
TensorX Builds AI Infrastructure Designed for European Enterprise Demand
TensorX has become the leading European sovereign AI infrastructure provider addressing growing enterprise demand for privacy-first AI deployment within European jurisdictions. Instead of operating as another AI model developer, the company focuses on providing private AI inference infrastructure powered by dedicated NVIDIA Blackwell GPUs, including the latest B300 chips.
TensorX is part of the NVIDIA Inception program and partners with Dell on GPU hardware sourcing. It helps the company provide private, sovereign AI inference with zero data retention. Unlike many cloud AI services that temporarily store data, TensorX infrastructure processes AI requests without retaining information after inference is complete. This approach significantly reduces privacy concerns while helping organizations satisfy GDPR requirements and comply with the EU AI Act.
TensorX is deploying NVIDIA Blackwell GPU infrastructure, including B300 chips, to support European AI workloads. The infrastructure is located in Dublin and Helsinki, ensuring the data remains within European jurisdiction. The company plans to expand capacity across Ireland, the UK, Germany, France, and the Nordics, with plans to deploy up to €100 million in NVIDIA Blackwell GPUs.
Satisfying European Laws and Regulations
The GDPR establishes strict rules governing the handling of personal data throughout the European Union. It went into effect on May 25th, 2018, and serves as the European standard for data protection across the continent. Meanwhile, the recent passage of the EU AI Act will introduce additional oversight for AI systems, particularly those used in high-risk applications for sensitive industries like banking and finance. The legislation goes into effect on August 2nd, 2026.
The EU AI Act will enhance local AI infrastructure compliance requirements for AI systems across all regulated sectors in the European Union. It is one of the main reasons why TensorX has seen a vast increase in demand for its services from organizations in Germany, France, Denmark, and the Netherlands.
In addition, the US Cloud Act gives permission to American authorities to persuade US-based cloud providers, such as Microsoft, Google, and AWS, to provide all European customer data it has retained. It doesn’t even matter where the physical servers are that host this information. The previous gag orders preventing European customers from ever being told about their data will no longer apply.
“European companies don’t want to make a political statement about their AI stack. They want to make a practical one,” said Tim Grant, Executive Chairman of TensorX. “Their data has to stay in Europe, on infrastructure they can trust, under laws they are required to comply with. It is what TensorX was built from, from the chips up. We’re excited to grow this team to power our ambitions to scale rapidly.”
About TensorX
Founder Shane Morton developed TensorX based on the demand for solving a common enterprise challenge. Previously, Morton developed and sold financial trading software before expanding into data center infrastructure by acquiring ICT Services. He would frequently have conversations with clients about their desire to adopt AI systems into their organizations. Still, they were worried about sending sensitive information to cloud providers outside of Europe.
That recurring customer concern ultimately led to Morton forming TensorX. By combining his experience in financial technology with his expertise in AI infrastructure deployment, Morton has been able to lead TensorX to develop a platform specifically designed to help European enterprises adopt AI without allowing their data to leave Europe.
