In an era where businesses are hemorrhaging thousands of euros monthly to Big Tech AI providers — while simultaneously training those providers' models with their own proprietary data and intellectual property — a Vienna-based startup is offering a radical alternative. Xinity is building Europe's sovereign AI infrastructure software, 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 an external AI provider 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 Software

Xinity's platform is deceptively simple in concept but powerful in execution. It is a European sovereign AI infrastructure software layer that enables companies to migrate from public AI APIs to fully controlled, local AI workloads — typically in days, not months. Xinity Runtime installs directly on your existing servers. No new hardware required. No cloud dependency. No data leaving your environment.

Here's what makes it different:

Drop-In Migration Xinity provides an OpenAI-compatible API that works with standard AI integration patterns. 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 Runtime runs AI models on your own hardware, in your own building. 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, legal, government, defense, and industrial manufacturing — this isn't just nice to have; it's often mandatory. Full compliance with the GDPR and the EU AI Act is built into the architecture, not bolted on as policy.

The Three-Step Migration Process

Xinity has refined migration to three clear phases:

1. Assessment A brief setup assessment captures your goals: cost optimization, latency targets, data control requirements, or compliance needs. Xinity sizes the software deployment based on your concurrent request targets, token volumes, and desired model capabilities. You can bring existing GPUs or have Xinity help you source and spec the right hardware. The output is a concrete blueprint with expected throughput, latency profiles, and go-live timeline.

2. Runtime Installation Xinity transforms your existing 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 deploy 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 infrastructure ownership instead of per-token pricing

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

• Immediate compliance gains for GDPR and EU AI Act requirements

• 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 software 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

• Compliance dashboard for EU AI Act reporting, built into the SME and Enterprise tiers

  
  

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 have 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 four tiers designed for different organizational needs, all as software subscriptions installed on your existing infrastructure:

Community (Free): For developers evaluating sovereign AI and building proof-of-concepts. Includes Xinity Runtime, OpenAI-compatible API, 1 compute instance, and community support. No commercial use.

Startup (€69/month, billed annually): For small teams making their first commercial sovereign AI deployments. Includes commercial use license, 2 compute instances, 15 API keys, usage analytics, and email support.

SME (€1,099/month, billed annually): For production workloads with governance requirements across multiple teams. Adds SSO/LDAP integration, role-based access control, audit logging, multi-model routing, and a compliance dashboard for the EU AI Act.

Enterprise (€1,999/month, billed annually): For organization-wide sovereign AI infrastructure with deep integration support. Adds unlimited compute instances and users, quarterly on-site AI Architect, dedicated Slack/Teams support, multi-site deployment, and a named account manager.

The Bigger Picture

The EU AI Act's high-risk system requirements take full effect on August 2, 2026. For enterprises in finance, healthcare, legal, and the public sector, the window to get compliant AI infrastructure in place is closing. Xinity is the only European-built, Vienna-based sovereign AI software platform that makes compliance a technical guarantee — not a contractual promise.

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 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.

Xinity is headquartered at Am Gestade 5/2, 1010 Vienna, Austria. More information: xinity.ai