Deepseek and Stargate: European competitors? SAP plans a €40 billion European AI offensive – subject to change – Image: Xpert.Digital
European AI independence: SAP's visionary plan in focus
40 billion for progress: SAP's strategy for a strong AI Europe
The technological landscape is undergoing rapid change, driven by advances in artificial intelligence (AI) and cloud computing. In this dynamic environment, SAP, Europe's largest software company, is positioning itself as a driving force for innovation and competitiveness. With an impressive investment of €40 billion planned over five years, SAP is developing a European response to the US-based "Stargate" project. This ambitious initiative aims not only to strengthen the European AI landscape but also to reduce reliance on non-European technologies. However, the realization of this project is contingent upon the European Union (EU) establishing a coherent and supportive regulatory framework for AI projects.
Europe's leading software company plans to invest 40 billion euros in a European alternative to the US project Stargate – but only on the condition that the EU creates better framework conditions for AI projects.
Background: Stargate and the global AI competitive landscape
The US project “Stargate,” initiated by President Donald Trump, envisions a massive $500 billion investment in AI infrastructure. This move underscores the United States' ambition to assume a leading role in AI development and application. Given this strategic initiative, it is clear that the AI sector has become a central battleground in global competition. The rise of AI is impacting not only technological innovation but also economic and geopolitical power dynamics.
Against this backdrop, the significance of SAP's announcement becomes all the more apparent. The software company, known for its enterprise software and cloud expertise, is not content to simply watch developments unfold from the sidelines. The €40 billion that SAP is committing to the European AI initiative sends a clear signal to policymakers and competitors that Europe is ready to leverage its own strengths to play a leading role in the global AI race.
The goals of the SAP initiative
SAP's planned investment pursues several strategic goals. First, it will be used to expand its cloud infrastructure in Europe. A robust cloud infrastructure is essential for storing, processing, and delivering the large volumes of data required for developing and applying AI systems. SAP recognizes the importance of a sovereign cloud that protects the data of European companies and ensures compliance with European data protection standards. Investing in AI research and development (R&D) is another key pillar of the initiative. SAP plans to invest specifically in developing new AI algorithms, models, and applications tailored to the specific needs of European businesses. Furthermore, the integration of AI into SAP's existing software solutions will be accelerated to deliver added value to customers and drive digital transformation.
The demands on the EU: A unified regulatory framework
At the annual press conference in Walldorf, SAP CEO Christian Klein emphatically stressed that the realization of the investment plans is contingent on clear political framework conditions. He criticized the current situation in Europe, where differing national regulations make it difficult for companies like SAP to scale AI solutions across the continent. Klein summed it up succinctly: The wake-up call for Europe is loud and clear
“We would also be prepared to invest more than 40 billion in cloud infrastructure and research and development in Europe.”
He emphasized the need for a sovereign cloud for Europe, rather than pursuing 27 different national approaches. In his view, the differing interpretations of European AI law across the 27 member states pose a significant obstacle to the development and widespread adoption of AI solutions. This market fragmentation makes it difficult to develop and deploy innovative AI applications on a broad scale. A unified regulatory framework, recognized and enforced by all EU member states, is therefore essential to safeguard Europe's competitiveness in this future-oriented field. Klein cautioned against simply copying the strategies of the US or China. He argued that subsidizing hardware is not necessarily required, as long as the regulatory framework enables investment and fosters development.
AI applications: The driving force behind growth
The importance of AI for SAP is also reflected in its current business figures. In the fourth quarter of 2024, half of SAP's cloud deals included AI components. The company forecasts cloud revenue growth of 26 to 28 percent for 2025. These figures illustrate the growing demand for AI solutions and their significance for SAP's future growth. The integration of AI into enterprise software is becoming increasingly standard practice, as companies recognize that AI-based applications can make their business processes more efficient, flexible, and intelligent. From automating routine tasks and analyzing large data sets to personalized customer interaction, the application areas of AI in enterprise software are diverse and offer enormous potential for optimizing business processes and creating competitive advantages.
The need for a European AI strategy
SAP's initiative underscores the need for a coherent European AI strategy based on shared goals and values. The EU must remove the obstacles hindering the development and deployment of AI in Europe. In addition to a unified regulatory framework, investment in research and education is crucial for strengthening the European AI landscape. Promoting centers of excellence, supporting AI startups, and creating training and professional development programs are essential steps to fully realizing the potential of AI in Europe.
The role of data and data protection
Another important aspect is data management. AI systems require large amounts of data to learn and perform their tasks. The availability of data and its responsible handling are therefore crucial for the success of AI initiatives. The EU has taken an important step towards ensuring data protection with the General Data Protection Regulation (GDPR). However, it is important to find a balanced approach that guarantees data protection without hindering the development of AI solutions. The creation of data trustees and the promotion of data sharing while adhering to strict data protection regulations could help meet this challenge.
The ethical dimensions of AI
The development and application of AI are not only technological and economic issues, but also ethical ones. The EU has set itself the goal of developing ethical AI that aligns with European values. This includes ensuring that AI systems are transparent, traceable, and non-discriminatory. Avoiding bias in AI algorithms and adhering to high ethical standards are crucial for gaining public trust in AI systems and fostering their acceptance. Independent ethical reviews of AI applications and the involvement of experts from various fields in the development process could contribute to achieving these goals.
The cooperation between the state and the private sector
SAP emphasizes the importance of close collaboration between the public and private sectors. Addressing the challenges associated with AI development requires a joint effort. The government plays a crucial role in creating the necessary framework, promoting research and education, and supporting companies in the AI field. The private sector, on the other hand, is the engine of innovation, developing and bringing new AI solutions to market. Close cooperation between the two sectors is therefore essential to fully realize the potential of AI in Europe and benefit European citizens and businesses. Christian Klein made a strong appeal: "It is imperative that we take action – both the public and private sectors.".
The future of AI in Europe
SAP's initiative sends an important signal for the future of AI in Europe. It demonstrates that European companies are ready to face the challenges and take a leading role in global competition. However, the chances of success depend on the EU's willingness to create the necessary framework and implement a coherent European AI strategy. The opportunities associated with the development and use of AI are enormous. The ability to use AI systems effectively and responsibly will be crucial for the competitiveness of European companies and the prosperity of the continent. If the EU succeeds in creating the necessary framework and fostering cooperation between the public and private sectors, Europe can become a global hub for AI innovation.
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