Axelera signs contracts to supply chips for AI factories and launches its second generation chip, Europa, targeting enterprise and defense applications.

European chip startup Axelera announced it has secured supply contracts for its AI‑focused processors and unveiled its second‑generation chip, Europa, aimed at enterprise and defence customers.

New supply deals for AI factories

The company said it signed agreements with several AI‑factory operators to provide its flagship Axelera‑1 processor, which is designed for high‑throughput inference workloads. The contracts cover both existing data‑center deployments and upcoming expansions in Europe.

Customers highlighted the chip’s low power consumption and built‑in security features as key factors in the decision, noting that the technology aligns with the EU’s push for sovereign AI hardware.

Launch of the Europa chip

Axelera introduced Europa, its second‑generation AI processor, which builds on the architecture of Axelera‑1 but adds a larger tensor core array and enhanced cryptographic modules for defence‑grade applications.

The company claims Europa delivers up to 30% higher performance per watt compared with its predecessor, making it attractive for edge AI devices that must operate under strict power budgets.

Target markets and strategic outlook

Axelera is positioning Europa for two primary markets: enterprise AI workloads such as natural‑language processing and computer vision, and defence systems that require secure, tamper‑resistant hardware.

  • Enterprise AI platforms seeking energy‑efficient inference
  • Military and aerospace projects needing hardened security
  • Edge devices for autonomous vehicles and robotics

The startup’s CEO emphasized that the new chip will help Europe reduce reliance on non‑European AI silicon, supporting the broader goal of technological autonomy.

We see Europa as a cornerstone for building trusted AI infrastructure across the continent, the CEO said during the launch event.

Analysts note that Axelera’s ability to lock in supply deals while expanding its product portfolio could accelerate its growth trajectory in a market dominated by larger incumbents.

For more details, see the Reuters coverage of Axelera’s AI factory supply deals and new chip launch.