OVHcloud Makes Its First Acquisition and Establishes Its Sovereign AI Lab
OVHcloud has signed a binding contract to acquire Dragon LLM, a French platform specializing in the fine-tuning of generative AI models for regulated sectors. This first acquisition marks the creation of the group's AI lab.
OVHcloud announced on Wednesday, March 25, the acquisition of Dragon LLM, a French company originally founded as Lingua Custodia. Dragon LLM develops specialized sovereign generative AI models, tailored for business applications and deployable on local infrastructures. As a winner of the Large AI Grand Challenge organized by the European Commission, the platform is recognized for its efficient and high-performing AI models, particularly aimed at financial and regulated sectors. This transaction constitutes OVHcloud's first acquisition and initiates the creation of its AI lab, dedicated to the training and fine-tuning of sovereign LLM models. The integration of Dragon LLM will allow the group to internalize the technological components developed by the Parisian company.
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Through this acquisition, OVHcloud enhances its team with new experts in AI model fine-tuning. The group will offer its clients new services in generative AI, specifically designed for sensitive data and deployable both in the Cloud and On-Premise. These solutions are part of OVHcloud's broader strategy to provide sovereign and independent cloud services. The company currently operates over 500,000 servers across 46 data centers on four continents, serving 1.6 million customers in more than 140 countries.
Founding Vision of Dragon LLM
Dragon LLM was founded to address the generative artificial intelligence needs of regulated industries, particularly the financial sector. Based in Paris, the company aims to build a European AI that is useful, responsible, and efficient, intended for businesses and the technological sovereignty of the continent.
SectorLogiciels et services numériques›Infrastructures IT / Cloud
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Context
Period
Period: FY2026
Key reported figures
Revenue: 1 145 millions d'euros
Revenue growth: 5,6 %
EBITDA: 480,5 millions d'euros
EBITDA margin: 42 %
Net income: 9,4 millions d'euros
Free cash flow: 24,7 millions d'euros
1 157 millions d'euros
Guidance from the release
Objectifs FY2027 – Accélérer la croissance et la création de valeur
Risks mentioned
Pression sur les prix des composants (RAM et disques) nécessitant des ajustements tarifaires
Concurrence accrue sur le marché du Cloud avec nécessité d'accélérer la montée en puissance des régions 3-AZ
Risque de visibilité limitée sur la croissance du T1 2027 malgré les objectifs annoncés pour FY2027
Opportunities identified
Redéploiement de la stratégie IA avec lancement d'OVHai Workspace et montée en puissance prévue en 2027
Accélération du Cloud Public avec région 3-AZ de Paris en forte traction (croissance de 20-24% au T4)
Montée en puissance de la nouvelle organisation commerciale par segments (Digital Starters, Digital Scalers, Corporates) attendue en 2027
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Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.