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Octostar raises €6.1 million to scale sovereign AI intelligence platform across Europe

European demand for sovereign intelligence technology accelerates

The geopolitical landscape reshaping European defence and security priorities is driving unprecedented demand for sovereign technology platforms — systems that operate entirely within national borders without dependence on foreign cloud infrastructure. With European governments investing close to €1 billion in defence technology through the European Defence Fund alone, and the continent’s tech sovereignty spending exceeding €1.5 trillion in 2026, the market for AI-native intelligence tools built on European soil is expanding rapidly. Galway-based Octostar has raised €6.1 million in a seed extension round to scale its sovereign AI intelligence platform across European government agencies.

The funding round attracted participation from existing strategic and venture capital investors alongside a notable new commitment from The Techshop, a Milan-based venture capital firm, and several new national institutional investors. The capital will accelerate deployment of Octostar’s platform, which serves national security, law enforcement, and financial intelligence organisations across Europe and beyond.

A European alternative to Palantir gains traction

Founded in 2023 by Dr Giovanni Tummarello, Robert Fuller, Varun Sharma, and Simone Scarduzio, Octostar has been identified by Intelligence Online as one of only two European alternatives to Palantir — the American data analytics giant that dominates the global intelligence software market. The distinction is significant at a time when European governments are actively re-evaluating their technology supply chains for intelligence and security applications.

“Nations are re-evaluating their technology supply chains for intelligence and security,” said Dr Tummarello, CEO and CPO of Octostar. “The question is no longer whether sovereign alternatives are needed, but how quickly they can be deployed.”

Octostar’s platform provides investigative intelligence capabilities including link analysis, communications intelligence, document intelligence, and GenAI-powered agents — all deployed within a fully sovereign, air-gapped architecture that operates without cloud or internet connectivity. This approach addresses a critical concern for European security agencies that increasingly view dependence on American hyperscalers as a strategic vulnerability.

Rapid deployment across EU institutions

The company’s commercial momentum has been striking for a startup founded less than three years ago. In Q1 2026 alone, Octostar completed three new deployments within EU national law enforcement and judicial bodies, with more than 15 additional deployments expected by year-end. The platform has also been deployed for national security purposes across the Middle East and Asia-Pacific, and the company has announced joint work with BAE Systems, one of Europe’s largest defence contractors.

Headquartered in Galway with a research and development centre in Bergamo, Italy, and offices in London, Octostar benefits from backing by Platform94, an Irish Government and EU initiative supporting deep-tech companies. The cross-border structure reflects the broader European approach to building sovereign technology: leveraging talent and institutions across multiple member states whilst maintaining independence from non-European infrastructure.

“Octostar is well positioned for an intelligence market that increasingly demands digital sovereignty,” noted investors from Cysero VC, highlighting the structural nature of the opportunity.

The sovereign AI imperative in European defence

The timing of Octostar’s funding aligns with a fundamental shift in European security thinking. US hyperscalers still control approximately 70 per cent of the European cloud market, a dependency that has become increasingly uncomfortable as transatlantic relations evolve. The European Commission has responded with initiatives including the EURO-3C project, which brings together more than 70 organisations to build sovereign cloud and AI infrastructure.

The Europe AI and analytics in defence market is projected to grow at 8 per cent annually through 2030, with information superiority commanding more than 10 per cent of the European Defence Fund budget. For intelligence software specifically, the shift towards sovereign platforms represents a generational procurement cycle that could reshape the competitive landscape for years to come.

With its air-gapped architecture, rapid deployment track record, and growing roster of European government clients, Octostar appears well positioned to capture a meaningful share of this expanding market — offering European agencies a credible, homegrown alternative to the American platforms that have long dominated the intelligence software sector.


Summary

  • Company: Octostar
  • HQ: Galway, Ireland (R&D in Bergamo, Italy; offices in London)
  • Founded: 2023
  • Round: Seed extension
  • Amount: €6.1 million
  • Key investors: The Techshop (Milan), existing strategic and VC backers
  • Use of funds: Scaling deployment across EU government agencies
  • Total funding: €6.1 million

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