Bulgarian AI infrastructure startup DiscreteStack has raised €800K in seed funding to expand its technology across regulated industries and increase its access to GPU computing capacity.
The round was led by CleverPine Ventures, with participation from strategic angel investors Milen Manev of Next Solutions and Stoil Vasilev of Paypercut, alongside several other investors.
DiscreteStack was founded eight months ago by Hristo Todorov, a software engineer and entrepreneur. The company is developing infrastructure that allows businesses to run open-source AI models on their own servers. The company says its patent-pending engineering optimizations enable even large AI models to operate on a single standalone server.
The infrastructure can also be completely disconnected from the internet when required, allowing organizations to keep sensitive data within their own systems. This makes the technology particularly relevant for industries such as financial services, insurance and the public sector, where data security, regulatory compliance and infrastructure control are increasingly important.
The fresh capital will be used to enter these regulated sectors and secure additional GPU computing capacity for further technology development.
From first customers to international partnerships
Despite being less than a year old, DiscreteStack says it has already secured its first enterprise customers in Bulgaria and international markets.
The company has also received the Seal of Excellence from the European Innovation Council Accelerator and joined Canada-based AI Partnership Corporation, a network bringing together more than 190 companies working in artificial intelligence.
In June, DiscreteStack was also accepted into the NVIDIA Inception Program, which supports technology companies developing AI-based products.
“European AI does not mean an American product hosted on a server in Frankfurt. It means organizations controlling the infrastructure on which their artificial intelligence runs, owning their own data, and setting their own rules,” said Hristo Todorov, founder and CEO of DiscreteStack.
“We believe AI will become critical infrastructure for businesses, and companies should be able to own it rather than simply rent it.”
Betting on European AI sovereignty
There is a growing focus on European technological sovereignty, as companies and governments pay increasing attention to where data is processed and who controls the underlying infrastructure. The European cloud market remains heavily dependent on US hyperscalers. According to figures cited by DiscreteStack, around 70% of Europe’s cloud infrastructure market is controlled by US technology companies, with many widely used AI services relying on the same infrastructure.
For DiscreteStack, this creates an opportunity for an alternative model in which companies own and operate the infrastructure behind their AI systems. The startup argues that as AI becomes embedded deeper into business operations, the question of who controls the infrastructure on which AI runs could become as important as which model organizations choose to use.
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