SAP partners with OpenAI and AWS to expand sovereign cloud and AI services in Germany

SAP SE is deepening its push into “digital sovereignty” by announcing new partnerships with OpenAI and Amazon Web Services aimed at serving European governments. The German enterprise software giant said Wednesday that it will collaborate with OpenAI to deliver AI services—including ChatGPT—to Germany’s public sector through SAP’s sovereign cloud subsidiary, Delos Cloud.

The initiative, branded “OpenAI for Germany,” will make AI tools available via Delos Cloud, which stores data locally and ensures compliance with European regulations. The move reflects growing demand among European nations for sovereign AI solutions that preserve control over sensitive data and critical infrastructure.

In a separate announcement, SAP revealed it will also extend its sovereign cloud offerings through AWS, further diversifying its infrastructure partnerships.

SAP has committed around €20 billion ($23.5 billion) to sovereign services in recent years, seeking to position itself as a key player in Europe’s response to global AI competition. While Delos Cloud is still in an “intensive development phase” and generated no revenue in 2024, SAP views it as a cornerstone of its long-term strategy to marry cloud and generative AI services.

The company has already undergone a significant cloud transformation, with cloud sales projected to hit nearly €22 billion this year—almost triple the figure from 2019. Now, SAP is aiming to replicate that success in AI, even as rivals like OpenAI expand infrastructure investments in Norway and the UK.

Unlike those initiatives, however, the German launch did not include plans for new data centers or capital commitments from OpenAI.

SAP’s shares rose 0.8% to €228 in Frankfurt trading following the announcement, though the stock remains down 3.5% year-to-date.