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STACKIT: Sovereign RAG Chatbot for the Schwarz Group

innFactory develops a fully sovereign AI chatbot for STACKIT based on LLama 3 and RAG - hosted exclusively in German data centers of the Schwarz Group.

STACKIT Cloud AI / LLM RAG LLama 3 Kubernetes Digital Sovereignty
STACKIT: Sovereign RAG Chatbot for the Schwarz Group
100% German Data Centers
LLama 3 Open Source LLM
RAG Retrieval Augmented Generation

About STACKIT

STACKIT is the cloud platform of the Schwarz Group (Lidl, Kaufland) and offers a fully sovereign alternative to US American hyperscalers as a German cloud provider. With data centers exclusively in Germany, STACKIT guarantees maximum data sovereignty.

The Challenge

The Schwarz Group uses a sovereign Google Workspace and needed an internal AI assistant for employee training - with a clear requirement: No data may leave Germany.

Classic AI solutions like ChatGPT or Claude were not an option since they run on US servers and would process sensitive company data.

The Solution: STACKI - The Sovereign Chatbot

innFactory developed STACKI, a RAG-based chatbot that runs entirely on STACKIT infrastructure and uses exclusively German data centers.

Technical Architecture

LLM Inference:

  • LLama 3 as open source Large Language Model
  • STACKIT Model Serving for GPU-accelerated inference
  • No dependency on external AI providers

Retrieval Augmented Generation (RAG):

  • PGVector in PostgreSQL for vector embeddings
  • Indexing of internal training materials
  • Context-aware answers based on company knowledge

Cloud-Native on STACKIT:

  • STACKIT Kubernetes Engine (SKE) for container orchestration
  • STACKIT Git for version control and CI/CD
  • Fully German infrastructure

What is RAG?

Retrieval Augmented Generation combines the strengths of Large Language Models with company-specific knowledge:

  1. Retrieval: Relevant documents are retrieved from the knowledge base
  2. Augmentation: These documents are passed as context to the LLM
  3. Generation: The LLM generates a response based on the provided context

The result: Precise answers with reference to internal documents - without the LLM needing to be trained on this data.

Our Services

  • Architecture Design for sovereign AI applications
  • RAG Pipeline development and optimization
  • LLM Integration with STACKIT Model Serving
  • Vector Database setup with PGVector
  • Kubernetes Deployment on STACKIT SKE
  • DevOps Pipeline with STACKIT Git

The Results

With STACKI, the Schwarz Group has an AI assistant that:

  • Runs 100% sovereign in German data centers
  • Intelligently searches and summarizes internal documents
  • Supports employee training on the sovereign Google Workspace
  • Transfers no data to external providers
  • Is GDPR compliant and AI Act ready

Why STACKIT?

AspectUS HyperscalerSTACKIT
Data StorageGlobally distributedGermany only
Legal FrameworkUS CLOUD ActGerman Law
LLM ProviderOpenAI, AnthropicOpen Source (LLama)
Data AccessTheoretically possibleExcluded
SovereigntyLimitedComplete

CompanyGPT on STACKIT

Based on this reference, our CompanyGPT product is now also compatible with STACKIT Model Serving. Companies can thereby operate a fully sovereign AI assistant - Made in Germany.


Related Services: STACKIT Cloud | AI & Machine Learning | Digital Sovereignty


Developed in partnership with STACKIT, the sovereign cloud provider of the Schwarz Group.

Technology Stack

STACKIT Cloud STACKIT Cloud
STACKIT Kubernetes Engine STACKIT Kubernetes Engine
LLama 3 LLama 3
PostgreSQL PostgreSQL
Python Python
Flask Flask
Docker Docker

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