SAP and NVIDIA to Accelerate Generative AI Adoption Across Enterprise Applications Powering Global Industries
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Insights
The announcement of SAP's collaboration with NVIDIA to integrate generative AI into SAP's cloud solutions marks a significant development in the enterprise software and AI technology sectors. This integration is expected to enhance SAP's cloud offerings by embedding advanced AI capabilities, potentially leading to increased efficiency and innovation in business processes. The partnership could also result in a competitive advantage for SAP in the cloud market, which is characterized by fierce competition and rapid technological advancements.
From a market perspective, the collaboration is likely to be closely watched by investors and competitors alike, as it signifies a strategic move by SAP to leverage NVIDIA's AI expertise. This could lead to a positive market reaction for SAP's stock if the integration leads to new customer acquisitions or increased usage of SAP's cloud services. For NVIDIA, the partnership with a major enterprise player like SAP could boost its presence in the enterprise AI space and may positively influence its stock performance if the collaboration yields successful outcomes.
The financial implications of SAP and NVIDIA's partnership could be substantial, given the growing demand for AI-driven business solutions. By enhancing SAP's cloud solutions with NVIDIA's AI technology, the companies are positioning themselves to capture a larger share of the enterprise AI market, which could translate into increased revenue streams. Investors should monitor the adoption rate of these enhanced cloud solutions, as it could serve as an indicator of the partnership's success and its impact on both companies' financial performance.
Furthermore, the development and deployment costs associated with the integration of generative AI capabilities will be a critical factor to watch. While these costs could weigh on short-term financials, the long-term benefits, such as potential market share gains and the creation of new revenue opportunities, could outweigh the initial investment. It's essential to evaluate the efficiency of the R&D spend and the timeline for the rollout of these capabilities, as delays or cost overruns could negatively impact investor sentiment.
From a legal standpoint, the partnership between SAP and NVIDIA to deploy generative AI within SAP's cloud solutions raises questions about data privacy and intellectual property rights. The use of large language models and AI to process and analyze enterprise data must comply with global data protection regulations, such as GDPR in Europe and various privacy laws in other jurisdictions. Ensuring that the AI applications adhere to these regulations will be essential to avoid legal risks and maintain customer trust.
Additionally, the co-development of AI capabilities could lead to complex intellectual property arrangements. It will be important for both SAP and NVIDIA to clearly define ownership of the developed AI technology and associated patents. As generative AI continues to evolve, staying ahead of the legal landscape will be important for both companies to safeguard their innovations and mitigate potential legal challenges.
Customers Can Harness Their Business Data in Cloud Solutions from SAP Using Customized LLMs Deployed with NVIDIA AI Foundry Services and New NVIDIA NIM Microservices
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The companies are collaborating to build and deliver SAP Business AI, including scalable, business-specific generative AI capabilities inside the Joule® copilot from SAP and across SAP's portfolio of cloud solutions and applications – all of which are underpinned by the SAP generative AI hub. The generative AI hub facilitates relevant, reliable and responsible business AI and provides instant access to a broad range of large language models (LLMs).
As part of SAP's ongoing initiative to build generative AI directly into the applications that power the world's businesses, the partnership aims to help customers adopt generative AI capabilities at scale across their organizations. SAP will use NVIDIA's generative AI foundry service to fine-tune LLMs for domain-specific scenarios and deploy applications with new NVIDIA NIM™ microservices. SAP and NVIDIA plan to make the new integrated capabilities available by the end of 2024.
"Enterprise customers want to leverage state-of-the-art technology that delivers real business value," said Christian Klein, CEO and Member of the Executive Board of SAP SE. "Strategic technology partnerships, like the one between SAP and NVIDIA, are at the core of our strategy to invest in technology that maximizes the potential and opportunity of AI for business. NVIDIA's expertise in delivering AI capabilities at scale will help SAP accelerate the pace of transformation and better serve our customers in the cloud."
"SAP is sitting on a gold mine of enterprise data that can be transformed into custom generative AI agents to help customers automate their businesses," said Jensen Huang, founder and CEO of NVIDIA. "Together, NVIDIA and SAP will bring custom generative AI to the thousands of enterprises around the world that rely on SAP to power their operations."
Harnessing Business Data and Generative AI to Advance Customer Insights
SAP and NVIDIA plan to collaborate to integrate generative AI into cloud solutions from SAP, which include the latest release of the SAP Datasphere® solution, SAP Business Technology Platform® (SAP BTP) and RISE with SAP®.
SAP plans to build additional generative AI capabilities within SAP BTP using NVIDIA's generative AI foundry service, featuring NVIDIA DGX™ Cloud AI supercomputing, NVIDIA AI Enterprise software and NVIDIA AI Foundation models. These new capabilities are designed to be the basis of SAP's development and deployment of generative AI for customers and is expected to be accessible in the generative AI hub in SAP AI Core® and SAP Datasphere.
Additional generative AI initiatives include:
- New capabilities for the Joule copilot: Joule can leverage retrieval-augmented generation (RAG) capabilities built by NVIDIA and SAP, which can be deployed on leading hyperscalers or SAP's own cloud environments. As a natural-language, generative AI copilot, Joule helps customers unlock the potential in their business by automating time-consuming tasks and quickly analyzing business-critical data to deliver more intelligent, personalized experiences.
- Innovative use cases leveraging SAP S/4HANA Cloud, SAP SuccessFactors® and SAP Signavio®: SAP and NVIDIA are exploring more than 20 generative AI use cases where the companies can combine assets to simplify and enhance digital transformation. Among these are generative AI features that can automate enterprise resource planning with intelligent invoice matching in SAP S/4HANA Cloud; improve human resources use cases leveraging SAP SuccessFactors; and accelerate new generative AI insights from SAP Signavio to better process business recommendations and optimize SAP's customer support processes.
- Unifying AI data sources with SAP Datasphere: Built on SAP BTP, SAP Datasphere enables integration and a unified view of semantically rich SAP data with third-party data across the enterprise landscape to help customers adapt faster to market changes and make more efficient and better informed decisions. With SAP Datasphere, customers can confidently access a high-quality data fabric using AI and machine learning (ML) models. To accelerate SAP's federated machine learning (FedML) capabilities for SAP Datasphere, NVIDIA and SAP are facilitating easier access to data for data scientists and enhancing ML workload performance with the support of NVIDIA accelerated computing platforms and NVIDIA AI Enterprise data science software such as NVIDIA RAPIDS™.
- Using LLMs for the ABAP programming language: To aid developers in creating domain-specific language code, SAP plans to use NVIDIA AI foundry services to assist in fine-tuning LLMs. This will build on SAP's use of generative AI models to assist developers who use ABAP through the company's ABAP Cloud model and SAP Cloud Application Programming model.
NVIDIA AI Enterprise Powers Production-Grade Generative AI Across Cloud Solutions from SAP
Once models are ready for deployment in cloud solutions from SAP, SAP plans to use NVIDIA AI Enterprise software, including NVIDIA NIM inference microservices and NVIDIA NeMo Retriever™ microservices.
NVIDIA NIM can be used to accelerate and maximize inference performance across the accelerated infrastructure from SAP. Using NVIDIA NeMo Retriever microservices, SAP plans to add RAG capabilities that enable generative AI applications to more securely access data running on SAP software to improve accuracy and insights. Customers can plan to use RAG on both SAP and third-party data.
To learn more about the SAP and NVIDIA partnership, watch the replay of Huang's GTC keynote address.
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About NVIDIA
Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company's invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling industrial digitalization across markets. NVIDIA is now a full-stack computing infrastructure company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/.
About SAP
SAP's strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate
Certain statements in this press release including, but not limited to, statements as to: the benefits, impact, performance, features, and availability of NVIDIA's products and technologies, including NVIDIA's generative AI foundry service, NVIDIA NIM microservices, NVIDIA DGX Cloud AI supercomputing, NVIDIA AI Enterprise software, and NVIDIA AI Foundation models, NVIDIA accelerated computing platforms, NVIDIA AI Enterprise data science software such as NVIDIA RAPIDS, RAPIDS cuDF and cuML, NVIDIA NeMo Retriever microservices; NVIDIA's partnership with SAP, the benefits and impact of such partnership, and the features and availability of its services and offerings; SAP sitting on a gold mine of enterprise data that can be transformed into custom generative AI agents to help customers automate their businesses; and NVIDIA and SAP bringing custom generative AI to the thousands of enterprises around the world that rely on SAP to power their operations are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2023 Annual Report on Form 20-F.
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