Josef 'Sepp' Hochreiter is launching NXAI, aiming to rival OpenAI.

The startup receives funding from Linzer Netural X and Austrian Pierer Digital Holding.

NXAI will develop the xLSTM algorithm, a more efficient AI language model.

xLSTM is designed to be less energy-intensive and faster than existing models like GPT-4.

Hochreiter's reputation is bolstered by his contributions to Siri, Alexa, and Google Translate.

NXAI's emergence reflects a growing trend of European start-ups challenging US AI dominance.