What was launched
Context Labs B.V. has launched the Context Labs AI Distillery, described in the release as a Context Engine for trusted sovereign AI. The product turns an enterprise's operational and business data into a governed Context Package that the enterprise owns. According to the company's announcement, every answer a model draws from the package is traced back to its source records.
How it runs
The AI Distillery operates inside the customer's own data centre or chosen cloud, and works with a frontier or open-weight model of the customer's choosing. The release says customers can switch models without rebuilding the Context Package. The company describes the process in three steps: distill, package and prove — mapping structured and unstructured data to industry-specific ontologies, storing the result with cryptographic provenance, and checking answers against the company's own records before a model goes into production.
Features and availability
Two components, Context Agents and the Semantic Context Tunnel, answer operational, commercial and compliance questions from the Context Package and bring that context into the AI assistant employees already use, within access controls set by the enterprise. The AI Distillery is available now through the Microsoft Marketplace, and each enterprise licence includes an industry starter kit. More detail is at contextlabs.com/distillery.
Demonstration and quote
At ADIPEC 2026 the company is demonstrating the product on energy-sector use cases, with a Context Agent answering operational questions and tracing each figure to plant records. Dan Harple, founder, chairman and chief executive, said models come and go while an enterprise's context should not, adding that frontier models do not supply governance, provenance or trust.
