TensorX raised €8 million seed funding to accelerate European sovereign AI infrastructure development.
Across Europe, demand for sovereign AI infrastructure has surged as enterprises seek to comply with increasingly stringent data protection regulations. Nearly 62% of European organizations are now seeking sovereign AI solutions—a figure that rises to 76% among banking institutions. IDC projects European AI spending will reach $144.6 billion by 2028, while Gartner forecasts that 75% of European enterprises will move their AI workloads to local providers by 2030.
The regulatory landscape reinforces this shift. The General Data Protection Regulation (GDPR) governs how personal data is handled across the EU, and the EU AI Act—set to take effect on August 2nd, 2026—will introduce additional oversight for AI systems in high-risk applications across regulated sectors. The US Cloud Act further complicates matters by permitting American authorities to compel US-based cloud providers such as Microsoft, Google, and AWS to provide European customer data they retain, regardless of where physical servers are located.
Against this backdrop, Irish AI infrastructure company TensorX has secured €8 million in seed funding led by Darius Cubed Ventures to build sovereign AI infrastructure that keeps European data within European borders. The company is already generating revenue and serving regulated industries, with customers including APEX: E3, Trade Locker, and Cor Prime across financial services, healthcare, legal services, and compliance-sensitive sectors.
"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 operates by running open-source AI models on dedicated NVIDIA GPUs with zero data retention—a critical differentiator from traditional cloud providers that may retain or reuse customer data. AI inference, the process of using trained models to generate content and make real-time decisions, powers every AI chatbot, coding assistant, and customer service agent. By processing inference requests without retaining data afterward, TensorX significantly reduces privacy concerns while helping organizations satisfy GDPR requirements and comply with the EU AI Act.
As a member of the NVIDIA Inception program and Dell partner, TensorX is deploying NVIDIA Blackwell GPU infrastructure, including the latest B300 chips, across Dublin and Helsinki to ensure 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.
"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."
Founder Shane Morton developed TensorX from firsthand understanding of enterprise AI adoption challenges. Previously, Morton developed and sold financial trading software before acquiring ICT Services to expand into data center infrastructure. His conversations with clients repeatedly surfaced the same concern: they wanted to adopt AI systems but worried about sending sensitive information to cloud providers outside Europe. By combining his financial technology expertise with his infrastructure deployment experience, Morton built TensorX specifically to enable European enterprises to adopt AI without allowing their data to leave the continent.