SAP CEO Christian Klein argues that Europe's proposed large-scale AI infrastructure, including five 'AI gigafactories,' is unnecessary. He believes European industries should concentrate on practical AI applications instead of competing with U.S. investment levels. The commoditization of large language models (LLMs) is proceeding rapidly, exemplified by the competitive progress of companies like DeepSeek. Klein suggests reallocating the €20 billion planned for AI infrastructure to advancements in battery technology and autonomous vehicles, as Europe currently lags in these areas.
SAP CEO Christian Klein emphasizes that instead of building massive AI infrastructure in Europe, sectors like automotive and chemicals should focus on practical applications of AI for their operations.
Klein points out that commoditization of large language models (LLMs) is occurring rapidly, with companies like DeepSeek demonstrating competitive AI capabilities against established giants like OpenAI and Google.
He expresses doubts about the necessity of large-scale AI infrastructure in Europe, suggesting that focusing on AI's practical applications could yield better results for businesses.
Klein notes that the current €20 billion allocation for AI infrastructure within the EU could be better spent on enhancing battery technology and advancements in self-driving cars.
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