European Tech

SAP is making a big push in enterprise AI, CEO Christian Klein cites AI as key to customer deals. Q3 cloud backlog surged 23% to €18.8B, showing demand for AI-infused cloud services. While Q3 revenue rose 7% to €9.08B, it slightly missed estimates. Deutsche Bank maintains a positive outlook, but SAP is guiding towards the lower end of its cloud revenue forecast. Klein emphasizes focusing on practical AI applications and value creation, stressing the importance of real-world adoption. SAP aims to transform into an AI-first entity.

Europe’s tech scene is showing signs of strength, challenging Silicon Valley’s dominance. Recent highlights include AI firm ElevenLabs’ valuation doubling to $6.6B, Mistral AI securing a 1.7B euro funding round, and Klarna’s successful NYSE IPO, valuing it over $17B. Investors see opportunities due to valuation discounts and a “born global” mindset among European startups. Challenges remain, including market fragmentation and the need for increased pension fund investment in venture capital. Initiatives like “EU Inc.” aim to address these issues by creating a unified regulatory framework.

European tech is showing signs of strength with recent activity including ElevenLabs’ valuation doubling, ASML’s investment in Mistral AI, and Klarna’s NYSE IPO valuing it over $17 billion. This has reignited discussions about Europe’s ability to compete with US and Asian tech ecosystems. However, challenges remain, including macroeconomic pressures, market fragmentation, and the need for pension fund investments in venture capital, hindering expansion. The “EU Inc.” initiative aims to address regulatory hurdles.