SAP and OpenAI have announced a partnership to deliver AI services exclusively for Germany’s public sector, addressing data sovereignty concerns whilst enabling government organisations to adopt artificial intelligence safely.
The collaboration will establish OpenAI for Germany, running on Microsoft Azure infrastructure through SAP’s Delos Cloud subsidiary. The platform targets millions of public sector workers across government departments, administrative bodies and research institutions, with deployment scheduled for 2026.
“Applied AI is what truly creates value. As a Business AI company with decades of experience serving public sector organisations, we believe OpenAI for Germany represents a huge step forward,” said Christian Klein, CEO of SAP SE. “We’re bringing together SAP Sovereign Cloud expertise with OpenAI’s leading AI technology to pave the way for AI solutions that are built in Germany, for Germany.”
The initiative addresses the growing demand for AI services that comply with strict European data protection requirements. Germany’s public sector organisations have faced challenges adopting cloud-based AI tools due to sovereignty and regulatory constraints, creating opportunities for locally-hosted alternatives.
Sam Altman, CEO of OpenAI, highlighted Germany’s technology heritage in announcing the partnership. “Germany has long been a pioneer in engineering and technology, so it’s no surprise that millions of Germans already use ChatGPT to make their lives easier, drive scientific breakthroughs, and build new businesses,” he said.
SAP plans significant infrastructure investment to support the platform, expanding Delos Cloud capacity to 4,000 GPUs dedicated to AI workloads. The company indicated potential for further expansion based on demand, utilising both existing SAP infrastructure and partnerships with co-location providers.
Microsoft’s involvement provides the underlying cloud platform for the sovereign offering. “Azure as the platform for Delos Cloud will power this, helping to ensure AI is deployed with the highest standards of sovereignty, data privacy, regulatory compliance, and operational resilience,” said Satya Nadella, Chairman and CEO of Microsoft.
The partnership aligns with Germany’s broader digital transformation objectives. The federal government’s High-Tech Agenda targets AI-driven value creation worth 10% of GDP by 2030, representing substantial economic opportunity for technology providers.
Supporting this ambition, Germany’s “Made for Germany” initiative has attracted backing from 61 companies and investors, securing commitments exceeding €631 billion for growth and modernisation projects. SAP recently announced its own €20 billion investment programme focused on strengthening Germany’s digital sovereignty.
The collaboration extends beyond basic AI services to include customised public sector applications and AI agents integrated directly into existing workflows. Target use cases include records management automation and administrative data analysis, potentially reducing bureaucratic overhead whilst improving service delivery.
SAP’s experience serving public sector clients positions the company to understand regulatory requirements and operational constraints facing government organisations. The partnership leverages this expertise alongside OpenAI’s large language model capabilities and Microsoft’s cloud infrastructure.
