Christian Klein, the CEO of SAP, has articulated a clear vision for Europe’s competitive future in artificial intelligence (AI): a focus on practical AI application within industries rather than simply building more data centers.
Klein’s statement directly challenges the notion, notably advanced by Nvidia Corp. CEO Jensen Huang, that Europe’s primary need in the AI race is to construct more data centers equipped with powerful chips.
Klein argues that large language models (LLMs), which demand substantial energy and computing power, are rapidly becoming commoditized. He cited China’s AI upstart DeepSeek as a prime example, noting its open-source model has outperformed leading US AI developers at a fraction of the cost.
Instead, Klein suggested that European industries, such as the automotive and chemicals sectors, should prioritize applying AI to fundamentally improve their existing businesses.
This perspective marks a notable shift in Klein’s stance. He had previously been a proponent of a European equivalent to the US “Stargate” plan, an initiative that calls for massive spending on AI infrastructure. However, SAP is now exploring a different role in future AI “gigafactory” projects, positioning itself as a technology and software provider rather than an operator or investor.
This strategic pivot reflects a growing emphasis on leveraging AI for tangible business improvements and operational efficiencies across key European industries.
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