China is shaking up the artificial intelligence industry with DeepSeek, a company that combines technological innovation with bold strategy. However, beyond the initial excitement, the "DeepSeek moment" appears to be as much a technical feat as a clever maneuver in an intense global competition.

A "DeepSeek Moment" Like Sputnik?

In 1957, Sputnik 1 triggered a space race between superpowers. In January 2025, DeepSeek seems to have replicated this effect in AI by launching two cutting-edge models: DeepSeek-V3 and DeepSeek-R1. These large language models (LLMs), trained on massive datasets, position themselves as serious competitors to OpenAI and Google, promising high performance at significantly reduced costs. However, this success has sparked both admiration and skepticism.

A Technological Breakthrough or an Economic Illusion?

DeepSeek's models stand out due to their open-source approach, in stark contrast to OpenAI or Google's proprietary choices. This transparency has been praised, notably by Yann Le Cun, who highlighted the power of collaborative innovation. But what truly caught attention was DeepSeek’s claim that it trained its V3 model for only $5.575 million. Compared to its competitors' astronomical investments, this figure seems almost impossible.

In reality, this amount covers only a fraction of the actual costs. The training of V3 was likely supported by a massive computing infrastructure accumulated by DeepSeek’s parent company, High-Flyer, long before the U.S. imposed export restrictions on advanced technologies to China. With a fleet of 50,000 GPUs, total expenses are estimated to be around $1.6 billion.

Three Innovations That Cut Costs

DeepSeek leverages impressive technical advances to optimize its models:

1. Multi-Token Prediction (MTP): Anticipates multiple words at once, reducing computational effort.
2. Mixture of Experts (MoE): Distributes processing across specialized "experts," reducing resource consumption.
3. Multi-Head Latent Attention (MLA): Enhances memory management during interactions.

These innovations allow DeepSeek to reduce inference costs by up to 30 times compared to OpenAI, making AI more accessible to a broader audience.

Controversies and Suspicions

However, DeepSeek is surrounded by controversy. OpenAI has accused the company of using data distillation techniques to train its models on protected information. Additionally, some observers, like Palmer Luckey, suggest that DeepSeek's announcements are part of a psychological strategy aimed at destabilizing U.S. players and diverting attention from potential violations of technology sanctions.

A Lesson for Europe

Despite the controversies, DeepSeek serves as a reminder that innovation is still possible with limited resources. Europe, often lagging behind American and Chinese giants, could take inspiration from this approach. Companies like France’s Mistral demonstrate that agile teams and open-source strategies can compete with the largest organizations.

DeepSeek represents both a technological achievement and a well-orchestrated geopolitical strategy. While its true impact remains to be seen, its open-source model and technical innovations could redefine the global approach to artificial intelligence. However, the story of this Chinese AI also highlights the geopolitical and economic stakes that drive this relentless race toward the digital future.

German startup Novo AI made a bold move two weeks ago when CEO Hemanth Mandapati switched from OpenAI’s ChatGPT to DeepSeek’s AI model. The transition, he said, took mere minutes.

“If you’ve built your application on OpenAI, switching to another model is easy… it took us minutes to migrate,”Mandapati shared at the GoWest venture capital conference in Gothenburg, Sweden.

DeepSeek’s emergence is reshaping the AI landscape, offering companies significant cost savings and pushing the industry toward more affordable, competitive AI models. More than a dozen startup executives and investors echoed this sentiment in interviews, saying that DeepSeek’s pricing is dramatically lower than its competitors.

“Their offer was five times lower than the standard AI pricing,” Mandapati added. “I’m saving a lot of money, and users see no difference in quality.”

Europe’s AI Catch-Up Moment

European tech firms have long lagged behind their U.S. rivals, partly due to limited funding opportunities. But DeepSeek’s arrival could help bridge the gap.

“This levels the playing field with Big Tech,” said Seena Rejal, Chief Commercial Officer of British AI firm NetMind.AI, another early DeepSeek adopter.

Analysts at Bernstein estimate that DeepSeek’s pricing is 20 to 40 times cheaper than OpenAI’s. While OpenAI charges $2.50 per million input tokens, DeepSeek offers the same for just $0.014.

However, regulatory concerns loom. Some European authorities are investigating whether DeepSeek has copied OpenAI’s data or censors politically sensitive topics related to China.

“DeepSeek’s long-term business outlook is unclear, but its impact is undeniable,” said Sanjot Malhi, a partner at venture capital firm Northzone.

A Wake-Up Call for European AI Investment

In 2024, venture capitalists poured nearly $100 billion into U.S. AI firms, compared to just $15.8 billion in Europe, according to PitchBook data.

Meanwhile, on January 22, U.S. President Donald Trump announced a $500 billion AI initiative called Stargate, a joint venture involving OpenAI, SoftBank, and Oracle.

In Europe, only France’s Mistral has emerged as a serious AI contender, competing against giants like OpenAI, Meta, Anthropic, and Google.

DeepSeek grabbed attention after revealing in a recent research paper that training its DeepSeek-V3 model required less than $6 million in computing power from Nvidia H800 chips. Since then, it has overtaken ChatGPT as the top-rated productivity app on Apple’s App Store.

“This proves bigger isn’t always better,” said Fabrizio Del Maffeo, CEO of Axelera AI. “Lowering AI costs makes it more accessible, which can drive innovation across the industry.”

Even if some analysts doubt DeepSeek’s cost claims, they acknowledge that its expenses are significantly lower than those of U.S. firms.

“DeepSeek is a huge opportunity for companies like ours,” said Ulrik R-T, CEO of Denmark’s Empatik AI. “It shows that you don’t need a billion-dollar budget to build impactful AI.”

The AI Price War: Cost vs. Security

The AI pricing battle is already heating up. Last week, Microsoft announced that OpenAI’s new o1 reasoning model would be available for free to all Copilot users, instead of the usual $20 per month subscription fee.

“AI costs are falling, and future adoption will likely favor transparent, open-source solutions—even if they come from China,” said Joachim Schelde of Scale Capital.

However, larger companies remain cautious. Tech giants like Nokia and SAP are hesitant to switch, citing concerns beyond cost.

“Price is just one factor,” said Alexandru Voica, Head of Corporate at Britain’s Synthesia, a firm valued at $2.1 billion. “Security, certifications, software integrations—these are just as important as affordability.”

With DeepSeek shaking up the market, Europe’s AI industry faces a pivotal moment—one that could either fuel its technological resurgence or deepen its reliance on foreign AI leaders.

Microsoft Corporation is a name synonymous with technological integration in daily life for millions worldwide. While the company’s stock performance has not skyrocketed in tandem with the tech industry’s explosive growth, Microsoft remains a powerhouse. Its strategic focus on artificial intelligence (AI) and Azure positions it as a frontrunner in technological innovation and revenue expansion.

Microsoft’s partnership with OpenAI has elevated Azure’s capabilities, creating a unique advantage in the generative AI space. This collaboration not only strengthens Azure’s market appeal but also cements Microsoft’s role as a leader in AI-driven advancements.

AI and Azure: Engines of Growth

Microsoft’s Q1 2025 earnings highlight its robust performance and strategic investments in AI and cloud computing. The company reported $65.6 billion in revenue, a 16% year-over-year (YOY) increase, accelerating from prior growth rates. Earnings per share grew 10% to $3.30, fueled by investments in AI technologies and the integration of Activision Blizzard.

The Intelligent Cloud segment, led by Azure, emerged as the crown jewel, contributing $24.1 billion in revenue—a 20% YOY increase—with Azure alone surging by an impressive 33%. This growth underscores the synergy between Microsoft and OpenAI, which enhances Azure’s offerings and attracts clients seeking cutting-edge AI solutions. Management forecasts further Azure growth, projecting up to 32% in the next quarter and sustained acceleration as new AI capabilities are rolled out.

Meanwhile, the Productivity and Business Processes segment generated $28.3 billion in revenue, up 12%, driven by enterprise adoption of AI-powered tools like Microsoft 365 Copilot. Businesses increasingly rely on AI to boost efficiency, and Microsoft’s product portfolio is well-positioned to meet this demand.

The More Personal Computing segment, contributing $13.2 billion in revenue, saw a 17% increase but remains cyclical. The acquisition of Activision Blizzard is expected to drive long-term growth despite a short-term $440 million dilution to operating income this quarter.

Strategic Investments and Financial Fortitude

Microsoft’s financial resilience is reflected in its $116.2 billion cash reserve, offset by $45 billion in debt. This solid foundation allows the company to invest heavily in AI and cloud computing while maintaining its competitive edge.

The company’s valuation, currently around 33 times earnings, may seem steep. However, given its consistent double-digit revenue growth, strong cash flow, and industry leadership, this premium appears justified.

Azure’s Pivotal Role in Microsoft’s Future

Azure’s performance is central to Microsoft’s growth narrative. Its deep integration with AI technologies like OpenAI’s GPT models makes it a preferred platform for enterprises transitioning to AI-driven operations. Azure’s scalability and innovation make it likely to surpass the Productivity segment as Microsoft’s primary revenue driver in the coming years.

Moreover, Microsoft’s ability to monetize AI applications like Microsoft 365 Copilot and Azure OpenAI services underscores its mastery in aligning innovation with market needs. These offerings not only enhance enterprise productivity but also position Microsoft as an essential partner for businesses adopting AI.

Risks to Growth

Despite its strengths, Microsoft faces challenges. Slower-than-expected AI adoption could impact Azure’s revenue growth. Additionally, fierce competition from Amazon Web Services (AWS) and Google Cloud threatens Azure’s dominance. Regulatory scrutiny, particularly regarding the Activision Blizzard acquisition and Big Tech policies, could also pose hurdles.

Long-Term Investment Outlook

Microsoft’s focus on AI and Azure ensures it remains a top contender for long-term investors. While short-term stock movements may be influenced by valuation concerns, the company’s fundamentals—strong cash flow, healthy margins, and leadership in AI and cloud computing—offer significant growth potential.

Consensus estimates project double-digit growth rates in the coming years. With GAAP net margins expected to rise from 37.7% to 45%-50%, Microsoft’s valuation aligns with its growth trajectory. Over the next five years, investors could see annual compounded returns of 15%-17%, outperforming the market average.

Microsoft’s strategic investments in AI and Azure reinforce its position as a tech leader. As the company continues to innovate and expand, it stands poised to deliver substantial returns, making it a cornerstone investment for those seeking exposure to high-growth sectors like AI and cloud computing.

Artificial Intelligence (AI) is revolutionizing the way businesses operate, transforming how data is managed, decisions are made, and processes are streamlined. SAP is leading this transformation with a bold vision: to integrate AI into every aspect of business operations. By combining advanced AI technologies with open-source models, SAP is redefining intelligent enterprises, enabling companies to adapt, innovate, and grow in today’s fast-paced world.

Addressing Business Challenges with AI

Modern businesses face critical challenges, such as handling vast amounts of data from multiple systems and making fast, informed decisions. SAP offers solutions to these challenges through integrated, AI-powered tools designed to improve operational efficiency and decision-making.

At the heart of SAP’s AI initiative is Joule, its advanced AI assistant. Joule empowers businesses by automating routine tasks, analyzing complex datasets, and delivering actionable insights. Its natural language capabilities allow users to interact conversationally, simplifying decision-making for employees at all levels. For instance, a salesperson can ask Joule for insights into customer leads, and Joule can analyze past interactions, recommend outreach strategies, and even prioritize leads for optimal engagement.

Joule integrates seamlessly with SAP’s core systems, such as SAP S/4HANA for enterprise resource planning and SAP C/4HANA for customer relationship management. This integration supports diverse business functions, including financial reporting, supply chain management, and sales optimization. By extending compatibility to third-party platforms, Joule ensures a consistent AI experience across systems, further enhancing productivity.

The Vision of Intelligent Enterprises

SAP’s vision centers on enabling companies to become intelligent enterprises—organizations that proactively address challenges, automate routine operations, and derive strategic insights from data.

This transformation is particularly impactful across industries:

• Manufacturing: Predictive maintenance powered by AI reduces equipment downtime and ensures smoother operations.
• Logistics: AI optimizes supply chains, improving delivery reliability and reducing costs.
• Healthcare: Patient data analysis leads to personalized treatment plans, enhancing outcomes and efficiency.

By streamlining these processes, SAP’s AI solutions are not just improving operations but fundamentally reshaping how businesses achieve their goals.

Joule: Redefining Business Operations

Joule stands out as a transformative AI copilot, leveraging advanced technologies like natural language processing (NLP), machine learning, and data analytics. Its ability to process complex data and present user-friendly recommendations makes it an indispensable tool for professionals across industries.

Key features of Joule include:

1. Natural Language Interaction: Joule understands conversational queries, eliminating the need for technical expertise.
2. Seamless Integration: By integrating with SAP products and third-party systems, Joule ensures broad utility and accessibility.
3. Real-Time Insights: Joule provides instant updates on metrics like revenue, expenses, and inventory, enabling timely decision-making.

For example, Joule can assist finance teams by automating real-time financial reporting or support supply chain teams by analyzing demand forecasts and optimizing delivery schedules. These capabilities enhance efficiency, minimize errors, and promote data-driven decisions.

Open-Source Models: Powering SAP’s AI Solutions

SAP’s embrace of open-source AI models reflects its commitment to accessibility, innovation, and adaptability. By leveraging frameworks like TensorFlow and PyTorch, SAP accelerates the development of AI-powered features while keeping solutions flexible for customization.

Open-source models offer several advantages:

• Cost Savings: Free access to robust AI tools reduces development costs.
• Community Innovation: Continuous updates from the developer community enhance functionality.
• Transparency: Open-source frameworks allow users to understand how models work, building trust and reliability.

However, open-source technologies also pose challenges, such as ensuring data security and managing frequent updates. SAP addresses these concerns by carefully selecting and customizing tools to meet its high standards for privacy, compliance, and scalability.

By integrating open-source components into Joule, SAP creates a more versatile and adaptable AI assistant. Businesses can further customize Joule by incorporating specialized models tailored to their needs. For instance, a healthcare provider could use a medical imaging model, while a retailer might integrate sentiment analysis for social media monitoring.

Responsible and Transparent AI Development

As AI becomes more widespread, concerns around ethics, privacy, and transparency grow. SAP is committed to developing AI solutions that meet rigorous ethical standards. All of SAP’s AI tools, including Joule, are designed with fairness, accountability, and clarity in mind.

Open-source collaboration reinforces this commitment by allowing community oversight, ensuring transparency, and fostering trust. Businesses can see exactly how SAP’s AI processes data and makes decisions. SAP also has measures in place to minimize bias, comply with data protection regulations, and monitor AI applications to ensure they remain responsible and reliable.

The Future of SAP’s AI Innovations

SAP is continually evolving its AI capabilities to stay ahead of business needs. Plans for Joule include integrating with the Internet of Things (IoT) to analyze real-time data from connected devices, enabling smarter operations in manufacturing, logistics, and beyond. SAP also aims to enhance Joule’s adaptability using technologies like advanced NLP and reinforcement learning, allowing it to tackle more complex challenges with minimal human input.

These advancements align with SAP’s goal of making AI accessible to businesses of all sizes. By offering scalable, affordable solutions, SAP ensures even small and medium-sized enterprises can benefit from the power of AI.

SAP’s vision for AI goes beyond incremental improvements; it represents a fundamental shift in how businesses operate. By combining advanced AI with open-source models, SAP empowers organizations to navigate complexity with agility and precision. Joule exemplifies this transformation, delivering practical insights and automating processes across diverse industries.With a steadfast commitment to responsible and transparent AI practices, SAP ensures these innovations are effective and trusted. This balanced approach positions SAP as a leader in enterprise AI, equipping businesses to succeed in an increasingly digital world.

In 2024, the tech industry is witnessing an increasing demand for specialized talent, with artificial intelligence (AI) and machine learning (ML) experts at the forefront. Over the past four years, the number of professionals in this field, such as machine learning engineers and data scientists, has grown by 74% annually. Nearly every sector—ranging from healthcare to finance—now leverages AI for data analysis, process automation, and the development of complex models and algorithms.

The pervasive nature of AI across industries underscores the need for the tech workforce to evolve. A Microsoft report projects that the number of tech jobs will skyrocket from 41 million in 2020 to 190 million by 2025. Adapting hiring strategies to bridge this skills gap is crucial for businesses looking to stay competitive.

AI and ML Experts: Core to the Future Workforce

AI and ML are no longer just buzzwords but essential components of modern industry operations. The McKinsey Global Institute predicts that up to 14% of the global workforce may need retraining by 2030 due to shifts driven by digitization, robotics, and AI. The demand for AI specialists and ML engineers continues to surge as businesses seek to build smarter systems and integrate advanced natural language processing.

This demand is especially pronounced in sectors such as healthcare and finance, where AI expertise is crucial for creating predictive models and automating complex workflows.

Cybersecurity: A Top Priority Amidst Remote Work Growth

As remote work becomes more prevalent and cyber threats grow increasingly sophisticated, cybersecurity roles are in higher demand than ever. The U.S. Bureau of Labor Statistics forecasts a 33% increase in cybersecurity jobs between 2020 and 2030. Key roles such as information security analysts, penetration testers, and security engineers are vital for safeguarding organizations against data breaches and maintaining compliance. Skills in risk assessment, incident response, and security frameworks have become essential as cyber risks intensify.

The Expansion of Cloud Computing Roles

The cloud computing market is on track to surpass $1 trillion by 2029, driving the need for professionals who can manage complex, multi-cloud infrastructures. Cloud engineers, proficient in platforms like AWS, Azure, and Google Cloud, are becoming indispensable as businesses continue to expand their reliance on cloud-based solutions.

Blockchain Technology: Beyond Digital Currency

Originally developed to support cryptocurrencies, blockchain technology has found new applications in finance, supply chain, and logistics. According to Precedence Research, the global blockchain market is set to grow from $17.60 billion in 2023 to $26.91 billion in 2024 and could reach $1,879.30 billion by 2034, with a projected CAGR of 52.9% over the forecast period. Companies are increasingly seeking blockchain developers and smart contract engineers capable of designing secure, cost-effective systems for varied uses. Salaries for these professionals often range between $80,000 and $140,000 annually.

High Demand in Tech Hubs and Competitive Salaries

The rapid evolution of AI has spurred a significant rise in job opportunities and salaries. A CompTIA analysis suggests that demand for data scientists is expected to climb by 304% over the next decade, with cybersecurity analysts following close behind at a 267% increase. Major tech hubs like San Francisco, New York, and London are seeing high competition for specialized talent, where top roles can command six-figure salaries.

Salaries differ based on location and living costs, but positions with specialized skills generally offer a premium, especially in high-demand markets.

The Importance of Soft Skills for Tech Leaders

While technical skills remain essential, the importance of soft skills such as communication, adaptability, and leadership is growing. For IT leaders, including CTOs and project managers, strong interpersonal skills are now critical for team management and guiding digital transformation initiatives. Companies increasingly prioritize hiring candidates who can blend technical expertise with these vital soft skills.

Rising Demand for IT Roles

According to CompTIA, hiring in the U.S. tech sector is expected to rise from 52% in early 2023 to 61% by the end of 2024. Although the second quarter of 2023 experienced a slight dip due to seasonal trends, growth resumed in the latter half of the year, signaling recovery and continued expansion in the tech sector.

To attract and retain top talent, companies must revamp recruitment strategies, offering competitive salaries, career development opportunities, and flexible work arrangements that appeal to skilled professionals.

The Challenge of Finding Specialized Talent

Despite the demand, filling roles in AI, cloud computing, and cybersecurity remains a challenge. According to Robert Half, 90% of hiring managers report difficulty in finding qualified candidates for these positions. Upskilling initiatives are emerging as a solution, enabling companies to develop their current workforce and foster career advancement, thereby addressing the talent shortage from within.

Upskilling and Lifelong Learning: Essential for Success

The fast-paced nature of technological change makes continuous learning a necessity for both employers and employees. Professionals are increasingly turning to certifications in programming, cloud computing, and cybersecurity offered by online platforms to stay competitive. These upskilling efforts not only help close the skills gap but also enhance job satisfaction and retention.

Conclusion: A Promising Outlook

The hiring landscape for 2025 holds both opportunities and challenges. While economic pressures and past layoffs persist, the demand for tech talent in the U.S. continues to rise. Companies must adapt, implementing strategic hiring and training programs to secure qualified talent. The global nature of work and the normalization of remote work are reshaping recruitment practices, encouraging businesses to source talent internationally.

Forward-thinking organizations that prioritize flexibility, continuous learning, and a strong focus on soft skills will be best positioned to thrive in this dynamic environment.

Meta Connect 2024 showcased some of the most groundbreaking advancements in augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), positioning Meta at the forefront of technological innovation. Held with the intent to redefine how people interact with technology, this year’s event highlighted the seamless convergence of AI with immersive technologies, along with updates to Meta’s hardware lineup. CEO Mark Zuckerberg introduced major AI-driven breakthroughs, AR devices, and tools that will shape the future of digital interactions.

The Unveiling of Orion AR Glasses

One of the headline announcements was Meta’s new Orion AR glasses, a revolutionary step in AR technology. The Orion glasses are Meta's first fully holographic AR device, offering a design that closely resembles traditional eyewear but is equipped with advanced capabilities. These glasses track voice, eyes, and hands, providing users with a deeply immersive and interactive experience.

The Orion glasses go beyond simple AR applications by integrating personalized AI assistants. These virtual helpers can anticipate user needs, respond to commands, and display holographic information in real time, making them ideal for both personal and professional use. Meta envisions Orion as a device capable of all-day wear, marking a significant leap in the wearable tech space.

Llama 3.2: Powering the AI Revolution

Meta’s AI division took center stage with the introduction of Llama 3.2, the latest version of its large language model (LLM). Llama 3.2 now includes vision-based LLMs with medium-sized parameters of 11B and 90B, as well as lighter text-only models with 1B and 3B parameters, optimized for mobile devices.

What sets Llama 3.2 apart is its ability to process both text and visual data, making it a versatile tool for industries ranging from virtual reality and robotics to content creation and customer service. This multimodal capability allows businesses and developers to create more intuitive, intelligent systems that can understand complex environments and deliver more personalized experiences.

Ray-Ban Meta Glasses Get Smarter

Meta also announced significant upgrades to its Ray-Ban Meta Glasses, enhancing their capabilities with integrated multimodal AI. These smart glasses now offer real-time language translation, natural conversational interaction, and memory assistance. The upgrades aim to make the glasses more user-friendly, particularly for those with visual impairments, while enhancing their utility for everyday users looking for seamless technology integration in their daily lives.

AI-Powered Instagram Reels Translation

One of the most intriguing AI-driven features revealed at Meta Connect 2024 was the AI-powered translation for Instagram Reels. This new tool automatically dubs and lip-syncs content into different languages, allowing creators to expand their reach to global audiences with minimal effort. This innovation is set to change how content creators connect with international audiences, making Meta's platforms more accessible worldwide.

Human-Like Meta AI Chatbot

Meta also introduced a major update to its Meta AI chatbot, which has been enhanced to offer more human-like interactions. One of the standout features is the ability to interact with the AI using celebrity voices, including John Cena, Keegan-Michael Key, and Kristen Bell. This personalized approach enhances user engagement, providing a more entertaining and immersive experience across Meta’s platforms, including Messenger, Instagram, and WhatsApp.

Meta’s Vision for AI-Driven, Immersive Experiences

Meta Connect 2024 demonstrated how far the company has come in integrating AI into AR and VR platforms. These advancements reflect Meta's long-term vision of creating a more immersive and interactive digital world, where users can seamlessly transition between virtual and physical spaces, aided by intelligent AI systems.

The event emphasized the convergence of Meta’s AI and AR/VR ecosystems, with AI becoming a foundational technology that powers new levels of personalization, interactivity, and accessibility across the company’s platforms and devices.

Expanding Business Horizons with AI

Meta’s focus on practical AI applications was another key highlight. The integration of AI into Meta's business tools and platforms is helping companies automate tasks, enhance customer service, and improve workflows. AI agents, designed to execute specific actions and achieve goals autonomously, are now widely used across Meta's ecosystem to drive efficiency and innovation in business operations.

Conclusion: A Glimpse into Meta’s Future

Meta Connect 2024 made it clear that the future of digital interaction will be deeply immersive, intuitive, and powered by AI. With major innovations like the Orion AR glasses, advancements in the Llama AI model, and enhanced features for both Ray-Ban Meta Glasses and Instagram Reels, Meta is positioning itself as a leader in the next era of technological transformation.

By blending AR, VR, and AI, Meta is not only enhancing the user experience but also reshaping how businesses, creators, and everyday users interact with digital spaces. As Zuckerberg concluded the event, it’s clear that Meta's vision for the future is one where digital and physical realities merge seamlessly, transforming the way we live, work, and connect.

At its recent Inspire event, Microsoft made a series of major announcements centered around generative AI, introducing Bing Chat Enterprise and Sales Copilot. The company also revealed the pricing for its Copilot tool within Microsoft 365.

During the Inspire conference, where Microsoft gathered its partners, the company elaborated on its strategy for deploying generative AI capabilities across its product lineup. It was announced that Copilot will be available to customers using Microsoft 365 E3, E5, Business Standard, and Business Premium at a price of $30 per user per month, excluding taxes.

Copilot, integrated into Microsoft’s suite of productivity and collaboration applications, can automate tasks and create content, such as analyzing Excel data, designing PowerPoint presentations, and summarizing Teams meetings. This pricing will take effect once Copilot is "generally available," though Microsoft has not provided a specific date. Currently, 600 enterprise customers are enrolled in the early access program.

Bing Chat Enterprise Debuts

Microsoft also announced the expansion of Bing Chat with a new Enterprise version and introduced Visual Search. Bing Chat Enterprise is a professional version of the AI-powered chat function Microsoft launched in February. This offering allows users to ask questions and receive responses from GPT-4, the large language model (LLM) developed by OpenAI, in which Microsoft has heavily invested since late 2022.

In a blog post, Microsoft executives Yusuf Mehdi and Jared Spataro noted that "similar to Bing Chat, Bing Chat Enterprise relies on web data and delivers thorough and verifiable responses, complete with citations and visual elements such as charts, tables, and images, all crafted in alignment with our AI principles." To ensure data protection, the service does not record any chat data or use it to train the underlying LLM. Additionally, Microsoft does not have direct access to the data, meaning that no one, including the company, can view the information used to power the tool.

"Bing Chat Enterprise is rolling out in preview today and is included at no additional cost with Microsoft 365 E3, E5, Business Standard, and Business Premium," Microsoft stated. It will also be available later as a standalone product for $5 per user per month. Moreover, Bing Chat will soon integrate image search via GPT-4. Users can upload an image to Bing Chat to search for similar content, learn more about the context of the image, or ask questions related to it. Visual search within Bing Chat is already being deployed for the Bing Desktop and mobile apps, with plans to add it to Bing Chat Enterprise later.

Introducing Sales Copilot for Microsoft 365 and Dynamics 365

At the Inspire event, Microsoft also unveiled Sales Copilot. "Designed for sales professionals, this version of the generative AI assistant is distinct from Microsoft 365 Copilot and Dynamics 365 Copilot," the company clarified, adding that the assistant can be accessed through tools used by sales teams, including Outlook, Teams, and Dynamics 365 Sales.

According to Jason Wong, an analyst at Gartner, Sales Copilot is "essentially a rebranded version of Viva Sales with added generative AI capabilities." He also noted that certain editions of Dynamics 365 will require a Sales Copilot license to integrate with Salesforce and other third-party systems.

SAP shares soared following the German software giant's announcement that its artificial intelligence-driven restructuring will lead to an additional €200 million in profits and result in more job cuts than initially anticipated.

The company, headquartered in Weinheim, Germany, initially outlined a comprehensive restructuring plan in January, projecting that around 8,000 employees would be affected at a cost of €2 billion ($2.2 billion). However, SAP now expects the restructuring to impact 9,000 to 10,000 jobs, with costs rising to approximately €3 billion.

SAP, Europe’s second-largest tech company after ASML, saw its shares on the Frankfurt Stock Exchange climb 6% on Tuesday, building on a 40% year-to-date increase. Meanwhile, SAP's New York-listed shares gained 4% in after-hours trading on Monday, having risen 30% so far this year.

The company, known for developing database software for major U.S. firms like Apple, Pfizer, and ExxonMobil, stated that the expanded restructuring plan is expected to enhance profits by approximately €200 million by 2025. SAP now forecasts profits of €10.2 billion in 2025, up from its previous estimate of €10 billion.

SAP emphasized that most of the job reductions will occur through voluntary leave programs and internal re-skilling initiatives.

In its second-quarter results, SAP reported a 10% increase in revenue, reaching €8.29 billion, slightly surpassing analysts' expectations of €8.25 billion, according to FactSet. The company’s net income for the quarter came in at €1.28 billion, exceeding the €1.22 billion forecasted by analysts.

Deutsche Bank analyst Johannes Schaller noted that SAP achieved double-digit organic revenue growth for the first time in five years, driven by agreements with companies such as ExxonMobil, ADP, Accenture, BASF, and Lenovo. Schaller added, "We believe SAP is still in the early stages of its 'harvest phase' following three years of substantial investments."

SAP's generative AI assistant, Joule, is revolutionizing enterprise operations by offering insights, tailored outcomes, and personalized experiences. According to SAP, this innovation significantly boosts productivity and efficiency. "We are entering a new phase of AI with endless opportunities for all of us," said SAP CEO Christian Klein at the Sapphire 2024 conference in Barcelona. By the end of 2024, Joule will manage 80% of the most frequently used tasks, increasing productivity by 20%.

Joule will streamline tasks in management, billing, cash collections, and finance, expediting processes and compliance checks. It will also serve as a powerful analytical engine, providing strategic recommendations using an extensive business-to-business data model. This model includes finance, supply chain, HR, sales, and ESG data from thousands of customers, enabling Joule to optimize operations.

During Klein's keynote, Nvidia CEO Jensen Huang praised SAP's role in managing Nvidia's complex supply chain, highlighting Joule's transformative potential. "This is the beginning of a new computing age, the beginning of a new industrial revolution," said Huang.

Dr. Philipp Herzig, Chief AI Officer of SAP, noted that internal use of Joule saved SAP consultants up to 2 hours daily. With over 50 SAP certification programs and 2TB of curated content integrated into Joule and powered by Nvidia's technology, these productivity gains could save up to 600 million working hours annually.

SAP has expanded its strategic partnerships with Google and Meta. The collaboration with Google enhances supply chain risk prediction by integrating Joule with Google’s Gemini AI assistant and Cloud Cortex Framework. The partnership with Meta leverages its advanced language model to enhance SAP SuccessFactors and SAP Analytics Cloud, transforming enterprise requirements into actionable insights.

Major Partnership Enhances Cloud ERP Capabilities

Ahead of its Sapphire 2024 conference in Orlando, SAP has announced an expanded strategic collaboration with AWS to enhance modern cloud ERP experiences using SAP GenAI (generative artificial intelligence). This partnership, led by new AWS CEO Matt Garman, aims to provide a significant boost for SAP cloud customers.

Streamlined RISE with SAP on AWS

The collaboration seeks to simplify the adoption of RISE with SAP on AWS, improve the performance and efficiency of SAP workloads in the cloud, and integrate SAP GenAI into essential business applications.

“AWS was the first cloud provider certified to support the SAP portfolio, and today, thousands of enterprises run SAP solutions on AWS to maximize their mission-critical applications,” said Garman. “Now, AWS and SAP are making it easier for companies to apply generative AI to their core business data to become more efficient, responsive, and sustainable.”

Accelerating Innovation with Generative AI

Christian Klein, CEO of SAP SE, highlighted the importance of this partnership: “Partnerships like this with AWS are critical as we embed generative AI solutions across our ERP applications, enabling customers to drive innovation at an accelerated pace. We are excited to support Amazon on their own transformation journey with RISE with SAP for pioneering projects like Project Kuiper, Amazon’s satellite initiative.”

Integration of Generative AI Models

The SAP AI Core infrastructure’s generative AI hub will provide secure access to a wide range of large language models (LLMs) for SAP business applications. By integrating GenAI models from Amazon Bedrock, SAP customers can leverage high-performing LLMs and foundational models to build customized applications.

This integration will help SAP customers adopt GenAI and modernize key business processes on SAP solutions. These innovations can be used within RISE with SAP and intelligent scenario lifecycle management, either as an integration component or directly on SAP Business Technology Platform (SAP BTP).

SAP and AWS will expand the use of Bedrock capabilities in the generative AI hub to enable further embedded AI functionality in SAP’s cloud solutions, including finance and product lifecycle management.

Leveraging AWS Graviton and Trainium

SAP currently uses AWS Graviton3 chips to support SAP HANA Cloud. The partnership includes collaboration on the next generation of Graviton4 for SAP HANA Cloud and other SAP applications. SAP also plans to use AWS Trainium and AWS Inferentia chips for AI and machine learning workloads, enhancing the development process of SAP GenAI.

Enhanced Memory and Flexibility with Amazon EC2

AWS has improved its memory database with Amazon EC2 High Memory U7i instances, offering up to 32TiB of memory in a single instance. These instances support expanding SAP HANA database requirements and improve the performance of memory-intensive applications like SAP S/4HANA Cloud as part of RISE with SAP.