German English Slovak Swedish
Materna IT Service Provid...  |  Generative AI  |  European AI and German AI...

European AI and German AI: Opportunities for Europe

European AI and German AI are becoming increasingly important for businesses, government bodies and public institutions. In view of growing demands regarding data protection, data sovereignty and regulatory certainty, Europe is developing its own AI technologies, language models and digital infrastructures. European AI is thus becoming a key component of Europe’s digital sovereignty and long-term competitiveness.

Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz. Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz. Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz. Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz. Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz. Visualisierung einer europäischen KI-Lösung für vertrauenswürdige und souveräne künstliche Intelligenz.
Adobe Stock ©
  1. European AI and German AI
  2. What is European AI and what role does German AI play?
  3. Digital sovereignty in Europe
  4. Which AI app is European?
  5. What is the name of the European ChatGPT?
  6. Does Europe have its own AI?
  7. Aleph Alpha: German AI for Europe
  8. The Pharia platform
  9. Which AI is hosted in Europe? 
  10. OpenEuroLLM – Europe’s shared language model
  11. What is C3 AI?
  12. The AI Act
  13. Which AI is better than ChatGPT?
  14. What is the name of the German AI? 

  15. FAQ

European AI and German AI: Europe’s path to digital sovereignty

The development of artificial intelligence (AI) is one of the most significant technological trends of the 21st century. Whilst the market has long been dominated by companies from the US and China, Europe is increasingly investing in its own AI technologies, European language models and digital infrastructure. For companies in Germany and Europe, the question of which – European AI, German AI or AI from Europe – offers a data protection-compliant, secure and sustainable alternative to non-European providers is becoming increasingly important.

The term ‘European AI’ refers both to AI systems developed by European companies and to applications operated and hosted within Europe. The focus here is not only on high-performance technologies, but also on issues such as the GDPR, the AI Act, data sovereignty, European hosting and control over data, data centres and digital infrastructure in Germany and the European Union.

What is European AI and what role does German AI play?

It is not possible to speak of a single ‘European AI’. Rather, the term encompasses a wide range of companies, research projects and technologies being developed within Europe.

These include:

  • Large language models (LLMs)
  • AI-powered assistants and chatbots
  • Translation and analysis tools
  • Enterprise AI for industry and public administration
  • European cloud and hosting infrastructures
  • Research initiatives and university projects

A key feature of European AI solutions is their alignment with European values. These include data protection, transparency, traceability and the responsible use of AI systems.

Digital sovereignty in Europe: Why European AI is becoming increasingly important

A key driver of the European AI strategy is what is known as digital sovereignty. This refers to Europe’s ability to develop and operate key digital technologies independently, without being dependent on non-European providers.

In the field of AI, this means in particular:

  • Developing its own language models
  • Establishing European data centres
  • Control over sensitive data
  • Independence from non-European cloud providers
  • Support for European technology companies

This aspect is becoming increasingly important for businesses, public authorities and critical infrastructure. Many organisations wish to ensure that confidential information is processed within Europe and is subject to European data protection standards.

Which AI app is European?

Examples from Germany and Europe

In recent years, several European AI companies have established themselves on the international stage.

Aleph Alpha (Germany)

Aleph Alpha was founded in Heidelberg in 2019 and is one of Germany’s best-known AI companies. The company develops high-performance language models and AI platforms for public authorities, businesses and organisations with stringent security requirements.

A key feature is the so-called ‘explainability’ of AI systems. Users should be able to understand the information on which a response or decision is based.

Aleph Alpha is regarded as a key building block for European AI sovereignty and is often described as Germany’s most significant AI provider.

Mistral AI (France)

Mistral AI was founded in France in 2023 and quickly became one of Europe’s best-known AI start-ups.

The company develops state-of-the-art language models and, with ‘Le Chat’, offers its own AI assistant, which is often described as the European alternative to ChatGPT.

DeepL (Germany)

DeepL, based in Cologne, is one of the world’s leading providers of AI-powered translation services. The platform is used by millions of people and businesses and is regarded as one of the most successful European AI products.

What is the European version of ChatGPT called?

An overview of European alternatives

There is no official European version of ChatGPT. Nevertheless, there are several European alternatives.

The best-known alternative at present is: Le Chat by Mistral AI

Le Chat is an AI assistant from Mistral AI and offers similar functions to ChatGPT:

  • Answering questions
  • Text generation
  • Summarising
  • Research support
  • Programming assistance

As Mistral AI is a European company and operates parts of its infrastructure in Europe, Le Chat is often referred to as the ‘European ChatGPT’.

Does Europe have its own AI?

The leading AI providers in Europe

Yes. Europe now has numerous AI companies, research centres and language models of its own.

The key players include:

  • Aleph Alpha (Germany)
  • Mistral AI (France)
  • DeepL (Germany)

In addition, the European Union and national governments are funding extensive research and development programmes to strengthen Europe’s competitiveness in the field of artificial intelligence in the long term.

Aleph Alpha: German AI for Europe

Aleph Alpha occupies a unique position within the European AI landscape.

Whilst many AI providers primarily target end users, Aleph Alpha focuses on organisations with high standards of security, transparency and data protection.

What makes Aleph Alpha special?

1. Sovereign AI

Aleph Alpha aims to provide AI solutions that can be operated entirely under European control. Companies and public authorities retain sovereignty over their data and infrastructure.

2. Explainable AI

A key distinguishing feature is the traceability of AI results. This is particularly important in sectors such as public administration, healthcare and finance.

3. Use in critical sectors

Aleph Alpha’s solutions are developed specifically for the following sectors:

  • Public administration
  • Defence
  • Industry
  • Banking
  • Healthcare
  • Research organisations

The Pharia platform

With the Pharia platform, Aleph Alpha offers a comprehensive AI infrastructure for businesses and public authorities.

The platform enables:

  • Cloud operation
  • Hybrid solutions
  • On-premises installations
  • Operation in isolated networks

This makes the technology particularly suitable for organisations with high security requirements.

Which AI is hosted in Europe? 

For many companies, it is not only the origin of an AI that matters, but also the location where data processing takes place.

European hosting offers various advantages:

  • Compliance with the General Data Protection Regulation (GDPR)
  • Storage of data within Europe
  • Greater control over sensitive information
  • Reduction of legal risks

Several European providers offer hosting within Europe, including:

ProviderCountry of originEuropean hosting
Aleph AlphaGermanyYes
Mistral AIFranceYes
DeepL  GermanyYes

Public authorities and regulated sectors, in particular, often prefer European hosting solutions.

OpenEuroLLM – Europe’s shared language model

Alongside private companies, Europe is also working on collaborative AI initiatives.

One significant project is OpenEuroLLM, which aims to develop high-performance European language models.

The initiative has several objectives:

  • Support for all European languages
  • Promoting open AI models
  • Building European infrastructure
  • Strengthening Europe’s technological independence

OpenEuroLLM is regarded as one of the most important European AI projects of the coming years.

What is C3 AI?

C3 AI is a US-based company specialising in AI solutions for businesses.

Unlike chatbots such as ChatGPT, C3 AI primarily develops applications for:

  • Industry
  • Energy supply
  • Financial services
  • Logistics
  • Public sector

Typical areas of application include predictive modelling, data analysis and process optimisation.

As the company is headquartered in the US, it is not part of the European AI landscape.

The AI Act: Europe’s regulatory framework for trustworthy AI

Europe is taking not only a technological but also a regulatory approach to artificial intelligence.

With the AI Act, the European Union has created the world’s first comprehensive regulatory framework for artificial intelligence.

The objectives of the Act are:

  • Protection of fundamental rights
  • Promoting trustworthy AI
  • Transparency in high-risk applications
  • Establishing uniform rules across Europe

The AI Act is regarded as a key component of the European AI strategy and is intended to strengthen the confidence of businesses and citizens in AI systems.

Which AI is better than ChatGPT?

There is no one-size-fits-all answer. The performance of an AI depends heavily on the specific area of application.

Area of applicationSuitable solution
General knowledge-based workChatGPT
Data protection and complianceAleph Alpha
European language modelsMistral AI
TranslationsDeepL
Company analysesC3 AI

Whilst ChatGPT is one of the most versatile AI assistants, European providers can offer advantages, particularly in terms of data protection, data sovereignty and regulatory requirements.

What is the name of the German AI?

Aleph Alpha as a German AI provider

When people talk about “German AI”, they are usually referring to Aleph Alpha.

The company has established itself as a leading German provider of trustworthy and sovereign AI and plays a central role in European efforts to develop independent AI technologies.

Thanks to its focus on security, transparency and European infrastructure, Aleph Alpha is now regarded as one of the key proponents of the European AI strategy.

Conclusion

In recent years, Europe has developed into a major hub for artificial intelligence. Companies such as Aleph Alpha, Mistral AI and DeepL demonstrate that European and German AI can offer powerful alternatives to providers from the US or China. For organisations in Germany and Europe in particular, data protection, European hosting, GDPR compliance and regulatory certainty are playing an increasingly important role.

Aleph Alpha, in particular, plays a key role within Europe. The company embodies the European approach to sovereign, transparent and trustworthy AI and develops solutions for organisations that set the highest standards for data protection and security.

Together with new initiatives such as OpenEuroLLM, the expansion of European data centres and the AI Act, Europe is pursuing the long-term goal of establishing an independent and competitive AI landscape. For companies, public authorities and public institutions in Germany and Europe, European AI is thus increasingly becoming a strategic option – not only from a technological perspective, but also in terms of digital sovereignty, compliance and trustworthy data processing.

Adobe Stock ©

European AI and German AI – trustworthy, sovereign, future-proof

Data protection, data sovereignty and regulatory certainty are becoming increasingly important for the use of AI. European AI providers are laying the foundations for high-performance and trustworthy applications that meet the requirements of businesses, government agencies and public institutions.

Get advice now

References & Use Cases

AI initiative for the federal government

ITZBund is working with Materna to trial the use of AI to support software development. This is based on KIPITZ, ITZBund’s AI portal, combined with high-performance software from NVIDIA AI Enterprise. The aim of the pilot project is to boost efficiency, secure a skilled workforce and accelerate the federal government’s digitalisation projects.

Adobe Stock ©

Air-gapped cloud solution for the federal administration

ITZBund has commissioned IONOS to set up a private enterprise cloud, which will be operated in ITZBund’s data centres. Materna is providing support as a cloud consultancy partner. We are delighted to be supporting this pioneering project over the next five years. Our experts provide advice on application scaling and operation, as well as on migration and integration issues relating to the existing infrastructure. Materna will also provide advice on the implementation of new cloud services within the business domain. Furthermore, at Materna, we are well-prepared to develop and operate future specialist systems as ‘cloud-native’ from the outset.

Adobe Stock ©

Forest Planning 4.0

The Forest Planning 4.0 project is creating a digital twin of the Bavarian Forest. It is being used to carry out a survey of the state-owned forest and to gather detailed information on the composition, location and condition of the vegetation. Precise and up-to-date data generated with the aid of AI helps to ensure the health and sustainable management of the forest. On behalf of Bayerische Staatsforsten AöR, Materna, together with a European consortium of partners from the forestry sector, is digitising almost the entire Bavarian state-owned forest, comprising around 800,000 hectares of woodland.

Adobe Stock ©

ATLAS IT specialist procedure

Since 1992, Materna has been working continuously on the further development of the ATLAS (Automated Tariff and Local Customs Clearance System) IT system for the German customs administration. ATLAS was developed by Materna on behalf of the Federal Ministry of Finance in collaboration with what is now ITZBund. As part of the software development process, Materna draws up functional and technical concepts, implements software components and provides support for the integration of the overall system. ATLAS is used to process declarations for the movement of goods and their subsequent placement under a customs procedure, as well as administrative documents, electronically.

Adobe Stock ©

Intelligent traffic management

The federal government’s Autobahn GmbH has equipped its traffic control centres with a modern, modular operating system, thereby laying the groundwork for the integration of future developments in automated driving. This will enable road users to reach their destinations even more safely and reliably. Materna and TraffGo Road are supporting this pioneering project by providing key development services and through various projects.

Development of the mobility data platform

Materna is responsible for the development, set-up and operation of the mobility data platform for NRW.Mobidrom GmbH. The Mobidrom data platform processes and aggregates mobility data across all modes of transport and makes it available on a non-discriminatory basis. The data and the services offered via the platform are aimed at local authorities, private and public transport operators, as well as research institutions and start-ups.

Adobe Stock ©

Chatbots for the Federal Administration

As part of the consolidation of services within the federal administration, an AI-supported base component is now being implemented. These so-called ‘Federal Bots’ complement the existing communication channels through which information and services provided by the federal administration are made available and enquiries can be answered automatically. Materna implements the individual bots for each organisation that utilises this core component, in line with their specific requirements.

Adobe Stock ©

Data room for smart living

Through the digitalisation and networking of living spaces and environments (Smart Living), many new applications and digital services can be developed that make living more energy-efficient, safer and more comfortable. Together with other partners, Materna is developing a secure data space for energy-efficient and sustainable living as part of the SmartLivingNEXT project. This platform provides easy access to smart living data. Thanks to the platform’s open architecture, various data sources can be integrated and shared, creating a diverse data ecosystem.

Adobe Stock ©

FAQ

No, not automatically. Having a European origin or hosting in Europe can help, but it is no substitute for an assessment of data processing, data processing on behalf of others, storage locations, the allocation of roles and security measures.

This depends on data protection, confidentiality, company policies and the AI provider in question. Organisations should be particularly cautious when dealing with personal data, trade secrets, customer data, health data and security-critical information

This is a key question that is not yet addressed in the text. The answer depends on the provider and the contract. Organisations should check whether prompts, documents or usage data are stored or used for training purposes.

‘European AI’ refers to the origin of an AI solution or who develops it. ‘European hosting’, on the other hand, refers to where the data is processed and stored.

For example, a European AI may be developed by a company based in Germany or France. This relates to the provider, the AI model, the technology and, often, European values such as data protection, transparency and digital sovereignty.

European hosting means that the technical infrastructure – i.e. servers, data centres and data processing – is operated within Europe. This is particularly important for GDPR compliance and maintaining control over sensitive data.

It is important to note that an AI system can be European, yet still be hosted partly outside Europe. Conversely, a non-European AI system can also be run on European servers. For businesses, therefore, both factors are relevant: who is providing the AI? and where is the data processed?

When selecting a European AI solution, companies should consider not only the provider, but also data protection, security, interoperability and the specific intended use.

The best European AI is not automatically the best-known one, but rather the solution that best suits the company’s intended use, data protection requirements and existing IT infrastructure.

CriterionWhy it is important
GDPR complianceThe AI should process personal data in a legally compliant manner and offer clear data protection policies.
Hosting locationCompanies should check whether data is processed in Germany, the EU or outside Europe.
Data sovereigntyIt is important to know who has access to data and whether input is used to train the AI.
SecurityEncryption, access controls, logging and certifications are particularly relevant when dealing with sensitive data.
Transparency and explainabilityOrganisations should be able to understand how results are generated and which sources or data are used.
PerformanceThe AI must be suited to the specific use case, such as text generation, analysis, translation, customer service or document processing.
Integration CapabilityIt is crucial that the AI can be integrated into existing systems such as Microsoft 365, SAP, CRM, DMS or internal knowledge databases.
Operating modelDepending on security requirements, cloud, hybrid cloud or on-premises operation may be appropriate.
Costs and scalabilityOrganisations should take into account the licensing model, usage volumes, operating costs and future growth.
Support and provider stabilityA reliable provider offering technical support, documentation and a long-term product strategy is important.

Security depends not only on the country of origin, but also on the architecture, access controls, encryption, certifications, logging, authorisation models and the specific operating model.

Yes, integration is possible – but it should be properly planned from a technical, data protection and security perspective.

Typical integration options include:

SystemPossible integration
Microsoft 365Integration with Outlook, Teams, SharePoint, Word, Excel or internal knowledge databases
SAPUse for process analysis, data queries, document processing, support cases or automation
CRM systemsSupport for customer service, summarising customer histories or automatic response suggestions
DMS and knowledge databasesSearching, summarising and analysing internal documents
Customised specialist applicationsIntegration via APIs, databases or custom interfaces

As well as Aleph Alpha, Mistral AI and DeepL, there are other European AI providers and projects. They are not always direct alternatives to ChatGPT, but often specialise in specific areas of application – such as image generation, customer service, robotics, software development or business automation. Companies should therefore first define their specific use case before selecting a suitable European AI solution.

Some examples:

  • Black Forest Labs – Germany: image generation and generative AI models, including the FLUX models
  • Helsing – Germany: AI for defence, security and situational analysis
  • Parloa – Germany: AI for customer service, contact centres and voice-based dialogues
  • Nyonic – Germany: AI models and platforms for businesses and industrial applications
  • Lengoo – Germany: AI-powered translation and language solutions for businesses
  • Neura Robotics – Germany: AI-powered robotics and humanoid robots
  • LightOn – France: Generative AI and language models for businesses
  • Poolside AI – France: AI for software development and programming support
  • Dust – France: AI assistants and automation for businesses
  • Synthesia – UK: AI videos and avatars for training, marketing and internal communication
  • Stability AI – UK: Generative image AI and open-source-oriented AI models
  • ElevenLabs – Poland / UK: AI voices, speech synthesis and audio AI
  • OpenEuroLLM – Across Europe: European initiative for open language models and European linguistic diversity

Data sovereignty means that organisations can control where data is stored, who has access to it, how it is processed, and whether it is used for training or model improvement.

High-risk AI systems are applications that can have a significant impact on people, for example in recruitment decisions, education, critical infrastructure, healthcare or public administration. Such systems are subject to stricter requirements.

The AI Act requires companies to scrutinise, document and assess the risks of AI systems more thoroughly. The greater the extent to which AI influences decisions or affects people, the stricter the requirements.

In concrete terms, this means:

ImpactImplications for businesses
Risk assessmentCompanies must assess whether their AI application poses a low, limited, high or unacceptable risk.
Documentation requirementsFor certain AI systems, their use, functioning, data sources, responsibilities and safeguards must be documented.
Transparency obligationsIn certain cases, users must be able to recognise that they are interacting with AI or viewing AI-generated content.
Stricter rules for high-risk AIParticularly sensitive applications, such as those in human resources, education, healthcare, critical infrastructure or public administration, are subject to more stringent requirements.
Monitoring of providers and toolsOrganisations must scrutinise more closely which AI providers they use, where data is processed and whether the solution meets regulatory requirements.
Internal governanceClear rules, responsibilities and processes for the use of AI within the organisation are becoming increasingly important.
Staff trainingEmployees should know how to use AI systems safely, responsibly and in compliance with data protection regulations.

Our expert

Portrait vom Ansprechpartner Thomas Feld

Thomas Feld
Vice-President of Data Economics and AI

What’s on our minds at the moment

Event
Verwaltung Digital
Public Sector
Berlin
23.11.2026 - 24.11.2026
Digital Justice Summit

Join us at the Digital Justice Summit and attend our presentation, “From Cash Book to Digital Assistant: How the Hessian Judicial System Is Rethinking Financial Audits,” which we are delivering jointly with the Hessian Judicial System on the second…

Read more
Event
Verwaltung Digital
Public Sector
Online
29.10.2026
Webcast: “Digital sovereignty as the foundation for a future-ready public administration”

How can specialized systems, platforms, and processes be designed to meet the requirements of the public sector while also being operated securely, efficiently, and independently? How do innovative technologies such as Agentic AI help make…

Read more
Blog
Verwaltung Digital
Public Sector
23.06.2026
BDI’s ‘EinfachStaat’ agenda: How public administration is going digital

Registering a car online, entering company details just once, using administrative services without having to switch between different platforms: the BDI’s ‘EinfachStaat’ agenda sets out where the digital state stands today and which reforms are…

Read more
Mike Henning ©
Press
Corporate
Data & AI
Public Sector
Dortmund
17.06.2026
SPARK, the AI for public authorities: Materna group helps public authorities speed up approval processes

With the launch of SPARK Workflow, public authorities now have access to a centralised AI-powered tool to process planning and approval procedures more quickly. As a member of the consortium responsible for the project, the Materna Group is…

Read more
Short News
Public Sector
30.04.2026
Materna & TrustNXT: Strategic technology partnership for digital trust protection

Digital content is now a key component of critical processes – which makes its authenticity all the more important.

That is why Materna and TrustNXT…

Read more
Adobe Stock © Menschen frieren und wärmen sich zu Hause neben einem Elektroheizgerät. Verärgerte, warm angezogene Ehepartner sitzen auf dem Sofa, frieren und versuchen sich aufzuwärmen. Heizungsprobleme, Konzept der Energiekrise
Blog
Resilience
Public Sector
23.01.2026
Focus on IT resilience: What the Berlin power cut means for organisations

On 3 January 2026, one of the most severe power cuts in decades occurred in Berlin’s Lichterfelde district. An attack on a cable bridge left around…

Read more
Adobe Stock © Richterhammer und KI-Symbol – ein Sinnbild für Rechtsprechung und künstliche Intelligenz.
Short News
Digital Experience
Data & AI
Public Sector
11.12.2025
Chatbot technology

In the public sector, chatbots facilitate communication between members of the public and the authorities. The Cybercrime Co-ordination and Contact…

Read more
Adobe Stock ©
Blog
Verwaltung Digital
Sustainability
Public Sector
25.11.2025
Sustainability through IT: How digital services strengthen the state, society and the environment

In the sustainability sector, there is often talk of the ‘twin transformation’ – digitalisation and sustainability as a shared challenge. But how…

Read more
Adobe Stock ©
Blog
Verwaltung Digital
Data & AI
Public Sector
04.11.2025
Intelligent automation: How AI is making public authorities fit for the future

How can public authorities work more quickly, in a more user-centred way and in full compliance with the law, despite a shortage of skilled staff,…

Read more

Materna Information & Communications SE

Digital matters.

We are here for you

Robert-Schuman-Straße 20 44263 Dortmund
+49 231 559 9 - 00
Contact us
Customer Service
© Materna 2026
Imprint
| Data Privacy
| Data protection settings