FRANKFURT (Reuters) – SAP said on Tuesday that the prospect of cheaper and more energy-efficient artificial intelligence models, presaged by China’s DeepSeek model, bodes well for growing demand for SAP’s AI services.
“Yesterday … (DeepSeek) showed that AI infrastructure will scale, it will become a commodity. Without this infrastructure you cannot run the gen (general) AI models,” CEO Christian Klein told journalists in a call.
“More and more players are entering the market and there will be not only one large language model. Yesterday was a good day for SAP,” he added.
Many technology stocks have fallen after the popularity of Chinese discount AI model DeepSeek wobbled investors’ faith in the profitability of AI and related investments.
(Reporting by Ludwig Burger, Editing by Rachel More)
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