On Tuesday, SAP commented on the potential impact of China's DeepSeek model on the AI landscape, stating that the emergence of more cost-effective and energy-efficient AI models is likely to drive increased demand for SAP's AI services.
During a call with journalists, CEO Christian Klein emphasized the significance of the DeepSeek model, stating, "Yesterday ... (DeepSeek) showed that AI infrastructure will scale, it will become a commodity. Without this infrastructure you cannot run the gen (general) AI models."
Klein also noted the expanding competition in the market, highlighting that "More and more players are entering the market and there will be not only one large language model." He concluded optimistically, "Yesterday was a good day for SAP."
The enthusiasm over DeepSeek's advancements contrasted with market reactions, as several technology stocks dipped following concerns about the profitability of AI and related investments prompted by DeepSeek's impact.