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SAP Chief Executive Officer Christian Klein has bristled at the notion that Europe needs to catch up with the rest of the world by constructing more data centers filled with high-powered chips.  Speaking to reporters at a press call from SAP’s headquarters in Walldorf, Germany, Klein singled out comments made by Nvidia CEO Jensen Huang during his headline-grabbing European tour. “Is it really that we need to build five data centers and put great chips in there? Is this what Europe needs? I doubt it,” Klein said. Huang, whose company is the market leader for AI chips, declared at an event in June that Europe is losing ground in artificial intelligence because it doesn’t have enough computing power.  During his visit, Huang announced several partnerships to help build that AI infrastructure on the continent, all predicated on Nvidia’s technology. He called on European leaders to take the kind of plunge that US tech giants were doing, investing huge amounts across many sectors in more data processing power. However, Klein argues that this approach would be a mistake for Europe. For him, the continent’s power is its industrial base, automotive, manufacturing, chemicals, engineering, and so on, not the ability to go head-to-head with American tech titans in the race to the bottom of raw computing. Instead of trying to emulate Silicon Valley’s hardware-first strategy, Klein said Europe should focus on creating clever AI applications that serve its core industries.  SAP steps back from gigafactory ambitions Klein’s statements indicate a drastic change in SAP’s AI strategy. Just six months ago, he said he fully supported Europe building its own AI “gigafactories” — massive facilities for training and scaling AI models. At the World Economic Forum in Davos in January, he cited the US-led “Stargate” effort as a “great role model” for Europe.…

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Filed under: News - @ July 4, 2025 1:26 am