OVHcloud plans its own AI model in early 2027

French cloud company OVHcloud expects to launch its first AI model in early 2027, its chief executive told Reuters on October 20, 2026. He also said about half of the company's data-center power is free for new customers. It means one of Europe's own cloud providers is stepping into the AI model race, not just renting out computers to others.

What happened

OVHcloud has 250 megawatts of connected data-center capacity, its chief executive said, as reported by Reuters. Of that, 140 megawatts is in use and 110 megawatts is ready for new business. Reuters described this as about half of the company's connected cloud being open for new clients.

The company expects to launch its first AI model in early 2027, Reuters reported. The model will use a "mixture-of-experts" design. That means it sends each task to smaller, specialized parts of the model instead of using the whole thing every time.

The news came on the same day OVHcloud published its yearly results.

Key facts

• Total capacity: 250 megawatts connected, per the chief executive, reported by Reuters.
• Free capacity: 110 megawatts ready for new business, with 140 megawatts already in use.
• AI model: First launch expected in early 2027, built with a mixture-of-experts design.
• Workplace tool: OVHai Workspace, a platform that runs work apps like email and is tuned on OVHcloud's own data, has its first pilot coming soon, before the model launches.
• Earlier work: In June, the chief executive told Reuters the company had started building its own AI models on Jupiter, which Reuters calls Europe's fastest supercomputer.

Background

OVHcloud's yearly results letter says the base for new AI services is "already in place," naming Token as a Service, large-scale inference orchestration, and GPU hosting. The same letter says AI investments will be made "in a measured and gradual way." It also says a large part of the electrical capacity of its data centers is still free, and that the company owns most of them.

The chief executive has also criticized Europe's state-backed computing programs. He told Reuters that because funding is split half from the EU and half from member countries, projects lean toward national plans. He said this has led to a race of national data-center projects without enough customers. In September, he called a proposed €200 million public promise to buy AI services over five years too small.

Because the free capacity already exists, OVHcloud can take on new clients without building first, Reuters noted. Rivals have to invest in new capacity to serve that demand.

What it means for you

Our take: many well-known AI models come from US or Chinese companies. A European cloud company building its own model gives European businesses and governments another option that keeps data closer to home.

Our take: free capacity is a double-edged fact. It means OVHcloud can sign up AI customers fast. It also means a large part of what it built is not yet earning money.

What happens next

The OVHai Workspace pilot is due shortly, and the first AI model is expected in early 2027, per Reuters. The company's letter says its team changes made this year will take full effect in fiscal 2027, according to OVHcloud.

FAQ

When will OVHcloud launch its AI model?

In early 2027, the company's chief executive told Reuters. It will use a mixture-of-experts design.

How much of OVHcloud's capacity is free?

About half. The company has 250 megawatts connected, with 140 megawatts in use and 110 megawatts ready for new business, per Reuters.

What is OVHai Workspace?

It is OVHcloud's AI platform for work apps like email. The company's letter describes it as a platform for creating and running AI agents, and its first pilot is due before the model launches, per Reuters.

Sources

• Reuters
• globalbankingandfinance.com
• blog.ovhcloud.com