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Investing.com -- SAP CEO Christian Klein has pushed back against the notion that Europe needs additional data centers to compete in artificial intelligence, directly challenging Nvidia CEO Jensen Huang’s recent European advocacy.
"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 Thursday during a media call from SAP SE’s (ETR:SAPG) headquarters reported on by Bloomberg.
Klein argued that large language models are becoming commoditized despite their heavy energy and computing demands. He pointed to Chinese company DeepSeek as an example, noting it had created an open-source model that outperformed leading US AI developers at a much lower cost.
Instead of matching infrastructure investments, the SAP chief executive suggested European industries such as automotive and chemicals should concentrate on practical AI applications to enhance their business operations.
Europe currently lags behind the United States in AI infrastructure development. American tech companies have announced the "Stargate" plan with potential investments reaching $500 billion, while the European Union has committed just €20 billion ($23 billion) for five AI "gigafactories."
During his June European tour, Huang claimed the region’s AI development was being held back by insufficient computing power. He announced partnerships aimed at strengthening Europe’s AI infrastructure using thousands of Nvidia (NASDAQ:NVDA) chips.
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