AI start-up Langdock moves headquarters back to Berlin from US

Fast-growing Berlin-based AI start-up Langdock is relocating its legal headquarters from the US back to Germany, German business newspaper Handelsblatt reported on Wednesday, citing the company's chief executives.

As part of the move, Langdock plans to convert its US parent company into a European public limited company, according to the report.

The decision is considered an unusual move at a time when many European AI firms are moving their headquarters to the US, primarily to gain access to venture capital.

The US also demands lower taxes on profits.

Besides strategic reasons, the main driver behind Langdock's decision is data protection risks under US legislation, including the Cloud Act and the Patriot Act, which allow authorities access to customer data under certain conditions, according to the report.

This is increasingly causing reservations among corporate clients, Handelsblatt wrote.

Langdock offers data protection-compliant access to language and image models from various AI providers to corporate clients.

More than 13,000 companies are already using the platform - including corporations such as Merck and Trumpf, according to the start-up founded just three years ago.

Langdock says it is operating profitably and most recently reported a recurring annual turnover of over €50 million ($57.6 million).

Management has far-reaching expansion plans linked to the move to Germany, with Langdock aiming to grow into a European cloud and AI infrastructure provider to strengthen Europe's required digital sovereignty.

The start-up plans to bring its first in-house data centre into operation before the end of this year, aiming to invest between €10 million and €15 million.