Noxtua Secures $92M to Develop Sovereign AI Tailored for the German Legal System

In 2020, the innovative startup Xayn focused on privacy-based, on-device AI solutions for smartphones. However, the company has since transitioned to creating sovereign AI technologies tailored for the legal industry. Now rebranded as Noxtua, the company has successfully secured a remarkable $92.2 million (approximately €81.2 million) in a Series B funding round, marking a significant milestone in its evolution.

Strategic Investment and Partnerships

The recent funding round was spearheaded by C.H. Beck, a prominent legal publisher in Germany that maintains a comprehensive archive of all legal cases and judgments within the country. This collaboration offers Noxtua invaluable access to legal archives and a news wire for its latest AI product, Beck-Noxtua.

New Investors Join the Journey

Alongside C.H. Beck, several other influential investors have joined Noxtua’s mission, including:

• Northern Data Group – A leader in high-performance computing.
• CMS – Germany’s largest business law firm.
• Dentons – A global law firm.

Notable previous investors include Global Brain, KDDI Open Innovation Fund, and Dominik Schiener.

Technological Advancements in Legal AI

Noxtua aims to leverage Northern Data’s cloud infrastructure, which operates entirely within Germany, to ensure legal compliance and data sovereignty. This is critical as the demand for legal compliance in Germany is exceptionally stringent. Noxtua’s AI system is designed to:

• Research legal matters
• Analyze complex legal documents
• Draft legally compliant documentation

With access to the largest legal database in the German-speaking world, comprising over 55 million documents from C.H. Beck, Noxtua is poised to enhance the precision and effectiveness of legal services.

Addressing Geopolitical Challenges

In light of current geopolitical tensions, the need for German-based AI models to operate on U.S.-based infrastructure has become increasingly problematic. As a solution, Noxtua has partnered with Northern Data, based in Frankfurt, to provide a secure hosting environment.

A Unique Approach to AI in Law

Dr. Leif-Nissen Lundbæk, CEO and Co-Founder of Noxtua, shared insights regarding the company’s specialized AI model during a recent conversation with TechCrunch. He emphasized that their transformer AI model is specifically trained on legal contracts, unlike U.S.-based models that primarily rely on American and some UK data.

“This is crucial, as the legal frameworks in countries like Germany or France differ significantly,” he noted. “Using American AI models in a German legal context can lead to precision failures.”

Research-Driven Innovation

Noxtua’s technology is rooted in extensive research conducted by the founders at the University of Oxford and Imperial College London, and it has been further developed in collaboration with CMS.

Commitment to European Legal AI

In a statement, Professor Dr. Klaus Weber, a member of the executive board at C.H. Beck, expressed strong support for Noxtua’s vision. He stated, “Noxtua’s commitment to building a sovereign European legal AI aligns seamlessly with our values. It forms a cornerstone of our innovation strategy.”

For more information about Noxtua and its groundbreaking legal AI solutions, visit their official website.