Yessica Klein
8 min read
09 November 2025
Widely regarded as one of the founding figures of modern deep learning, Professor Sepp Hochreiter is the inventor of the Long Short-Term Memory (LSTM) algorithm, an innovation that underpins today’s large language models. Based in Linz, Austria, he leads cutting-edge AI research at Johannes Kepler University and directs the LIT AI Lab and ELLIS Unit Linz. In 2024, he cofounded NXAI, a deeptech startup developing a new class of AI architectures called xLSTM, which enables efficient, real-time machine learning for industrial and robotic applications. With Linz emerging as a European AI hotspot, Hochreiter continues to shape the future of AI from both the lab and the edge.
What kind of research are you conducting at NXAI, and what real-world problems are you trying to solve?
NXAI is a deeptech company developing a new class of AI architectures based on xLSTM technology. With xLSTM models, we speak the language of humans but also the language of machines and processes – time series. This means that we optimize industrial processes, optimize the flow of goods, save resources and can enable completely new applications in robotics with small, efficient AI models on the edge.
How did this project come about, and what questions are you trying to answer?
The idea for NXAI grew out of my work developing the LSTM algorithm back in the 1990s, which many now recognize as the starting point of modern deep learning. When the first large language models appeared, I saw the potential to do something similar, but faster and more efficient, with a new architecture: xLSTM. That’s what we’re building now.
NXAI is based in Linz and connected to the Johannes Kepler University. How has this contributed to your success in this work?
I’ve been teaching at Johannes Kepler University Linz for many years, so our connection to the university is very strong. JKU is one of Europe’s leading institutions in AI, and being based here gives us direct access to top researchers, talent and a highly engaged ecosystem.
“We have one of the best universities here, the best minds locally, and many digital companies, but also industrial companies that want to get involved and use AI for their industries.”
You write on your website that Linz is “the New European AI Hotspot.” How did Linz become such a hub for AI research and innovation?
We have one of the best universities here, the best minds locally, and many digital companies, but also industrial companies that want to get involved and use AI for their industries.
How does Linz fit into the broader European startup ecosystem?
Strong research meets innovative companies that are looking for and need new solutions to be competitive in the future.
What would you like people interested in starting a company to know about Linz?
There is a famous saying in Austria: It starts in Linz. That is the spirit of our city.
As a founder, what lessons have you learned and what advice might you give to a young person hoping to make it in your field?
Don’t let the naysayers discourage you, don’t be unsettled: believe in yourselves and keep pushing forward.
“It starts in Linz. That is the spirit of our city. ”