SAP brings OpenAI to German public sector via Delos Cloud

Germany’s largest software company, SAP SE, is teaming up with OpenAI to make artificial intelligence services available to the country’s public sector.

The initiative, called “OpenAI for Germany,” will provide tools such as ChatGPT through SAP’s Delos Cloud platform, which stores data locally and complies with European data protection rules.

The project marks a new step in bringing generative AI to government operations in Europe while meeting strict legal and security standards.

SAP’s shares rose more than 2% on Wednesday following the announcement, reflecting investor confidence in the company’s AI-driven strategy.

SAP and OpenAI expand into government services

The partnership is designed to make AI tools accessible to ministries, state agencies, and other public organisations in Germany.

By hosting OpenAI’s services on Delos Cloud, SAP ensures that sensitive data will remain within the country’s borders, a requirement under German and EU regulations.

Delos Cloud was created to meet exactly these kinds of sovereignty and compliance needs, offering local data storage and operations for cloud-based services and guaranteeing a secure environment for sensitive government workloads.

SAP has been preparing its software and infrastructure to handle advances in cloud computing and now sees generative AI as the next major step in this transformation.

By working with OpenAI, it aims to support Germany’s public institutions in adopting AI while maintaining transparency and compliance with strict European laws.

Local data compliance at the centre

European governments have repeatedly stressed the importance of keeping data within national or regional boundaries when adopting new technologies.

SAP’s Delos Cloud provides the platform for that purpose, ensuring German public institutions can access AI without transferring data outside the country.

This arrangement is expected to reduce barriers for the adoption of OpenAI tools in highly regulated public services, allowing smoother implementation and integration with existing digital infrastructure.

The use of generative AI in public administration is being closely watched across Europe, as countries look to modernise services but remain cautious about data privacy.

Germany’s collaboration with SAP and OpenAI is positioned as one of the first large-scale efforts to bring AI directly into government functions under a fully compliant framework.

SAP’s role in Europe’s AI strategy

SAP is Europe’s largest technology firm and has already invested in several AI companies, including Aleph Alpha, Cohere, and Anthropic.

These moves reflect its long-term focus on building capabilities in generative AI beyond just partnering with OpenAI.

The company’s efforts are also part of a wider trend in Europe, where governments are seeking to balance innovation with strict legal and ethical frameworks.

The announcement comes at a time when AI adoption is expanding quickly in both the private and public sectors.