SAP CEO Christian Klein believes that Europe should not focus on building numerous data centers with powerful chips but should develop AI applications suitable for local industries.
He stressed that instead of competing over hardware like the U.S., Europe should leverage strengths in industrial sectors such as automotive, chemicals, and engineering to create practical and effective AI applications.
MAIN CONTENT
Europe should not replicate the AI strategy focused on building massive data centers like the United States.
SAP withdraws from the AI gigafactory project, shifting to provide AI platforms and applications.
The trend of open-source AI becomes a superior choice instead of competing in expensive hardware.
Why does the SAP CEO oppose the construction of multiple large-scale AI data centers in Europe?
Christian Klein, CEO SAP, based on his experience managing a leading technology group, believes that Europe should not compete on raw processing power like major U.S. tech companies as this does not align with the continent's inherent strengths.
Instead of building more data centers housing high-end AI chips, Europe should focus on developing practical AI applications for traditional industries such as manufacturing, automotive, and chemicals, which is the sustainable strategy. Speaking at SAP headquarters in Walldorf (Germany), he emphasized: “Do we really need five data centers equipped with such powerful chips? I doubt that.”
“The race for AI infrastructure is not the path for Europe. Our strength lies in the fundamental industries, let’s leverage artificial intelligence to enhance the value of these sectors.”
Christian Klein, CEO SAP, 2024, Walldorf
How has SAP's policy changed regarding the AI gigafactory in Europe?
After initially supporting the construction of large-scale AI 'gigafactories' in early 2024, SAP has now changed its strategy and withdrawn from direct investment projects in AI centers modeled after the U.S.
The negotiation process for cooperation with German and EU businesses has stalled due to differences in long-term investment vision. SAP will support these projects in the role of technology, software, and custom AI application provider rather than as a major investor.
This move reflects the growing skepticism among European industrial leaders about adopting the U.S. style AI model. The EU remains committed to investing 20 billion euros in building 5 AI gigafactories, but SAP chooses to partner by focusing on developing software and applications rather than competing in hardware.
“SAP continues to play the role of providing technology platforms, offering lean AI solutions rather than directly operating large data centers.”
Thomas Saueressig, Head of SAP Customer Service, 2024
Why does SAP advocate for open-source AI instead of a model based on extreme computational power?
Christian Klein presents his viewpoint based on practical examples like DeepSeek from China, a company using open-source AI models that have achieved outstanding results without relying on massive investments in expensive hardware.
He emphasized that in the future, intelligent, lean, and highly applicable AI models will be the key to success, rather than the race to possess the strongest computational power or billion-dollar budgets.
SAP's current priority is to integrate AI into enterprise software systems to optimize logistics processes, predictive maintenance for machinery, smart chatbots, and real-time decision-making systems for supply chain management.
Criteria U.S. Strategy (Nvidia) European Strategy (SAP) Investment Priority Build large-scale AI data centers and chips Develop AI applications in traditional industries Role of SAP Not participating directly Supplier of AI platforms and applications for businesses Investment Cost Billions of USD into hardware infrastructure Prioritize low-cost, open-source AI solutions AI Approach Focus on large AI models, raw computational power Develop lean AI models, practical applications
Frequently Asked Questions
Why does SAP CEO Christian Klein oppose building multiple AI data centers in Europe?
He argues that this is not Europe's strength, as it incurs high costs and is less effective than focusing on developing AI applications for traditional industries.
Is SAP still participating in the EU's AI gigafactory investment?
SAP has withdrawn from investment projects and only participates as a technology, software, and custom AI application provider.
Why does SAP support open-source AI rather than building extreme computational AI models?
Open-source AI helps reduce costs, accelerates innovation, and better meets the real needs of businesses.
How much is Europe investing in AI gigafactories?
The EU is committed to spending around 20 billion euros to establish 5 large-scale AI data centers across the region.
Which AI application does SAP prioritize developing within businesses?
Priority on integrating AI in logistics, predictive maintenance, customer chatbots, and real-time decision support for supply chains.
Source: https://tintucbitcoin.com/ceo-sap-phan-doi-ha-tang-ai-nvidia/
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