Sovereign AI: NexGen Cloud Gets Funds For Its Infrastructure In Europe
Cloud vendors are focusing on bringing AI solutions to their customers in ways that address sovereignty concerns rising from the mounting geopolitical instability globally. Just in the first two weeks of April, we have seen this at KubeCon Europe 2025 and at Google Cloud Next 2025 in Las Vegas.
In this context, the UK-based GPU cloud services startup NexGen Cloud has recently secured $45 million of Series A funding to bolster its AI infrastructure platform for European enterprises. The company rents space and power in established data centers, enabling customers to secure time on GPUs and offering AI workload support on dedicated virtual machines within the local data centers to address data security concerns. This “GPU as a service” model has the potential to change the AI infrastructure landscape in Europe.
- Europe-based GPU resources enable sovereign AI cloud infrastructure. The AI race is led by non-European companies. In 2024 and continuing into 2025, there has been intense competition between AWS, Google, and Microsoft, centered around AI. Having local options for GPUs mitigates European dependencies on US big tech and paves the way to AI cloud infrastructure sovereignty for European organizations.
- Companies can stop harvesting GPUs and start consuming them on demand. In the last two years, organizations have been piling up GPUs in reaction to the scarcity issues, with the collaboration between Microsoft and OpenAI, featuring ChatGPT and Copilot technologies, triggering a surge in demand for NVIDIA GPUs. Having GPUs available on demand can bring increased availability, more efficient budget allocation in AI infrastructure spending, and higher utilization of the chips.
- Organizations can refocus their investments. Cloud providers are investing billions of dollars into the promising AI opportunity and aiming to acquire or develop AI chips that can handle the extensive computational requirements of large language models. Even leading European public cloud vendors, however, have limited capabilities compared to hyperscalers and global cloud vendors. With GPUs available on demand, European organizations can leverage GPUs at scale for AI workloads while freeing up capital to sustain other investments.
Reach out to Forrester to schedule an inquiry to help guide your sovereign AI cloud infrastructure initiatives or to dig into this announcement.