SAP SE (SAP) is making a calculated play for the European market with Thursday's launch of the EU AI Cloud, a platform designed to address one of the continent's biggest concerns around artificial intelligence: who controls the data.
The EU AI Cloud represents the next evolution of SAP's European digital sovereignty strategy, consolidating various initiatives into a single, unified platform that keeps AI deployment firmly within European regulatory and operational boundaries. For organizations navigating the increasingly complex landscape of data regulations, this matters quite a bit.
Here's how it works: customers get to choose their level of sovereignty and deployment based on their specific needs. That means options ranging from SAP's own data centers to European infrastructure partners, or even fully managed on-premise solutions for organizations that want maximum control. The flexibility is the point—different industries and use cases demand different approaches to data residency and security.
The platform ensures EU data residency and full sovereignty across the board, which helps organizations comply with regional regulations without sacrificing access to cutting-edge AI capabilities.
Strategic AI Partnerships
The partnership with Cohere stands out as particularly significant. SAP and Cohere are teaming up to deliver Cohere North's agentic AI through the EU AI Cloud and SAP Business Technology Platform (BTP), specifically targeting regulated industries that need production-ready AI with robust security controls.
Beyond Cohere, SAP is integrating advanced AI models and applications from providers like Mistral AI and OpenAI directly into SAP BTP. This gives organizations the ability to build, deploy, and scale AI solutions across SaaS, PaaS, or IaaS options—whether on SAP infrastructure or through trusted European platforms.
The cooperative model is designed to give European businesses and public institutions access to state-of-the-art AI technology while meeting regional compliance, sovereignty, and deployment flexibility requirements. It's essentially threading the needle between innovation and regulation.
Expanding the Ecosystem
SAP has been busy building out its partnerships. Earlier this month, Snowflake and SAP announced they're integrating Snowflake's AI Data Cloud with SAP's Business Data Cloud, bridging enterprise data silos in what both companies are positioning as a major AI integration push.
The company also recently strengthened its collaboration with France's AI ecosystem, including expanded partnerships with Bleu, Capgemini, and Mistral AI, further cementing its position in the European sovereign AI landscape.
SAP Price Action: SAP shares traded down 0.33% at $239.22 during premarket trading on Wednesday.