In an era where businesses are hemorrhaging thousands of euros monthly to Big Tech AI providers, while simultaneously training those providers’ models with proprietary data and intellectual property, a Vienna-based startup is offering a radical alternative. Xinity is building Europe’s sovereign AI infrastructure, enabling companies to run generative AI on-premise without relying on hyperscalers or exporting sensitive data beyond their borders.

The Problem: Cloud AI’s Hidden Costs

Every API call to external AI providers isn’t just an expense, it’s a data export. Your prompts, responses, and business logic flow to servers outside your control, training models you don’t own, under terms that can change with a pricing update email. For European companies facing GDPR compliance, data sovereignty requirements, or simply unpredictable token-based costs, this model is becoming untenable.

The numbers tell the story: LLM costs are exploding. What starts as a few hundred euros in experimentation quickly scales to tens of thousands monthly as AI integrations move to production. Token pricing is volatile, opaque, and ties your infrastructure costs directly to external providers’ pricing strategies.

The Xinity Solution: Sovereign AI Infrastructure

Xinity’s platform is deceptively simple in concept but powerful in execution. It’s a European sovereign AI infrastructure layer that enables companies to migrate from public AI APIs to fully controlled, local AI workloads—typically in days, not months.

Here’s what makes it different:

Drop-In Migration

Xinity provides a compatible API that works with standard AI integration patterns. That means migrating from cloud AI to sovereign AI requires changing exactly two things in your codebase: the base URL and your API key. Your existing SDKs, request formats, streaming implementations, JSON mode, and function calling all work unchanged. Many teams start with A/B routing—sending 5-10% of traffic to Xinity to validate quality and costs before scaling up.

True On-Premise Deployment

Unlike managed cloud services, Xinity runs AI models on your own hardware, in your private cloud, or on approved European compute infrastructure. The AI comes to your data, not the other way around. This isn’t just good for compliance, it fundamentally changes your cost structure from unpredictable per-token pricing to infrastructure-based costs you can forecast and budget.

Production-Grade Orchestration

Xinity isn’t just packaging open-source models. The platform provides intelligent model routing across GPUs, automatic load balancing, sophisticated observability, and cost tracking per request. It handles the operational complexity that makes on-premise AI challenging: GPU-aware scheduling, fault tolerance, monitoring, and audit logs.

Data Sovereignty by Design

Every design decision prioritizes keeping data under your control. Xinity enables GDPR-aligned deployments with full auditability, mTLS security, role-based access control, and the ability to keep data residency within specific jurisdictions. For regulated industries, finance, healthcare, government, media, etc., this isn’t just nice to have; it’s often mandatory.

The Three-Step Migration Process

Xinity has refined migration to three clear phases:

1. Hardware Assessment (or Xinity Handles It) A brief setup assessment captures your goals: cost optimization, latency targets, data control requirements, or compliance needs. Xinity sizes the infrastructure based on your concurrent request targets, token volumes, and desired model capabilities. You can bring existing GPUs or have Xinity deliver pre-configured hardware. The output is a concrete blueprint with expected throughput, latency profiles, and go-live timeline.

2. Runtime Installation Xinity transforms your infrastructure into secure, high-performance inference nodes. This includes a hardened base image with fixed drivers and GPU libraries, plus the Xinity runtime for orchestration, streaming, auto fine-tuning, and observability. Guardrails align with your policies—JSON mode, function calling, logging controls. For air-gapped environments, Xinity sets up private registry mirrors, SSO, project-wise API keys, and audit logs.

3. Plug and Play The cutover is intentionally unremarkable. You swap the base URL and API key—that’s it. Your application logic remains untouched. Teams often deploy strong open-source models locally that match their chosen performance class, with the ability to hot-swap models per route to optimize for latency or cost without changing application code.

Real-World Impact

Xinity already has customers running their own AI infrastructure. As the Head of AI at a leading Austrian media firm describes it: “Data sovereignty is not merely a strategy; it’s a mandate. Xinity enabled us to transform our existing server rooms into a modern AI platform, complete with specialized LLMs and seamless integration into our software stack.”

The economics are compelling. Xinity customers report:

• 60-80% lower AI costs through hardware ownership instead of per-token pricing

• Average ROI of 4 months, with predictable infrastructure-based costs

• Immediate compliance gains for GDPR and regulated environments

• Enhanced performance with controllable latency and throughput

The Technology: More Than Model Hosting

What sets Xinity apart isn’t just running open-source models on local hardware—it’s the production-ready infrastructure layer that makes sovereign AI operationally viable:

• Seamless system integration with unified data connections and real-time syncing

• Central AI control plane for managing workloads across teams with centralized routing, policies, and observability

• Enterprise-grade capabilities including support for open-source and custom models, fine-tuned domain-specific models, and GPU-aware scheduling

• Cost and usage transparency with full logging, monitoring, and predictable costs

The Vision: A Resource-Independent Europe

Behind Xinity are founders Jonas Vander and Alexander Zehetmaier, each bringing a decade of AI expertise with complementary skill sets. They’ve organized over €10 million in EU AI startup funding and are backed by experienced angel investors with proven track records in AI investments.

The team has demonstrated their technical prowess by building CircuitVision, a world-class language model for electronic circuit analysis—proof that specialized, domain-specific AI can match or exceed general-purpose models in specific niches.

Their mission extends beyond individual customer success. As they describe it: “When migration is this simple, everyone can achieve it, and we at Xinity are one step closer to our goal: a compute-resource-independent Europe.”

Flexible Pricing for Every Stage

Xinity offers three tiers designed for different organizational needs:

Startup (€399/month): For teams moving from public AI APIs to sovereign AI. Includes one high-performance GPU system with Xinity pre-installed, drop-in migration, GDPR compliance out of the box, automatic data collection, one-click fine-tuning, and up to 60% cost reduction.

Enterprise (€999/month): For production AI across teams. Adds instant scale-out with multiple compute nodes, dedicated AI architect/MLOps engineer hours, rack-ready deployment, canary deployment, and central control plane for team collaboration.

Custom Pricing: For large-scale, regulated, or highly specialized environments. Includes architecture tailored to your latency, cost, and compliance targets, integration of existing GPU/AI infrastructure, and co-designed KPIs and migration roadmap.

The Bigger Picture

Xinity represents a fundamental shift in how European companies can approach AI infrastructure. Instead of accepting the trade-offs inherent in cloud AI—unpredictable costs, data export, dependency on hyperscalers—companies can now run production-grade AI systems with full control, full compliance, and full transparency.

This isn’t just about cost savings or regulatory compliance, though both are significant. It’s about strategic autonomy. In a world where AI capabilities are becoming fundamental to competitive advantage, owning your AI infrastructure means owning your destiny.

As more companies realize that their data and domain expertise are valuable training assets—not commodities to be exported—sovereign AI infrastructure becomes not just an option but a strategic imperative. Xinity is positioning Europe to lead in this new paradigm.