Core Insights - SAP SE has extended its collaboration with France's AI ecosystem, including Bleu, Capgemini, and Mistral AI, to enhance Europe's digital, cloud, and AI sovereignty [1][9] - The partnerships aim to protect critical infrastructure from cyber threats and ensure sensitive data remains within European jurisdiction [2][6] - SAP's commitment to European digital sovereignty includes an investment of over €20 billion in sovereign cloud and AI solutions [5][9] Collaboration and Partnerships - The collaboration with Bleu and Delos Cloud focuses on ensuring digital autonomy for Europe by keeping sensitive operations within European control [2] - SAP and Capgemini will enhance their partnership to drive AI-driven enterprise transformation while adhering to regulatory and cybersecurity standards [3] - The partnership with Mistral AI aims to integrate advanced AI capabilities into SAP's Business Technology Platform and develop industry-specific applications [4] Financial Outlook and Performance - SAP is experiencing strong momentum in Cloud ERP and growing adoption of its Rise with SAP and Grow with SAP offerings, with AI expected to drive double-digit revenue growth through 2027 [7] - The company has raised its 2025 outlook, forecasting higher profitability, with cloud revenue projected near the low end of €21.6–€21.9 billion and non-IFRS operating profit near the high end of €10.3–€10.6 billion [8]

Core Insights - SAP has announced a collaboration with French tech companies to develop AI-led sovereign cloud solutions aimed at protecting European data and intellectual property while supporting digital transformation in the region [1][4] Group 1: Partnership Details - The partnership includes SAP, Bleu, Capgemini, and Mistral AI, focusing on enhancing Europe's digital infrastructure and cybersecurity measures [2][3] - SAP's subsidiary Delos Cloud has formed a Franco-German alliance with Bleu to ensure technical and operational cooperation during crises like military conflicts or cyberattacks [2][3] Group 2: AI and Cloud Solutions - The collaboration aims to provide European organizations with enterprise data management services, cloud platforms, and AI capabilities, accelerating the adoption of AI-driven solutions in public and regulated sectors [4] - SAP plans to integrate Mistral AI's products into its Business Technology Platform, creating what is described as the first full sovereign AI stack for Europe [5][6] Group 3: Focus Areas and Future Plans - A dedicated sovereignty pillar will initially target German public services, with potential expansion to other industries across Europe [6] - The integration of Mistral's AI capabilities into SAP's European cloud infrastructure will ensure secure deployments that comply with local standards [6]

Core Insights - SAP SE has announced a collaboration with France's AI sector, including partnerships with Bleu, Capgemini, and Mistral AI, to create secure, scalable, AI-driven sovereign cloud solutions aimed at advancing Europe's digital transformation [1][9]. Group 1: Collaboration and Partnerships - The collaboration combines SAP's enterprise application expertise with France's AI ecosystem to enhance data protection and intellectual property while promoting European innovation [1][2]. - Bleu and Delos Cloud have formed a Franco-German alliance to safeguard Europe's digital infrastructure, focusing on crisis response and operational cooperation in extreme scenarios [2][3]. - SAP and Capgemini are deepening their partnership to enhance cybersecurity and accelerate AI-driven enterprise transformation solutions across Europe [5]. Group 2: Sovereign AI and Digital Sovereignty - SAP and Mistral AI are expanding their partnership to provide a full sovereign AI stack for Europe, integrating Mistral's AI capabilities into SAP's cloud infrastructure [6][8]. - The collaboration aims to develop industry-specific AI applications that leverage both companies' strengths to address complex challenges and unlock new business value [7][8]. - SAP is investing over €20 billion in sovereign cloud and AI solutions to create a resilient digital foundation for European governments, public institutions, and enterprises [9].

Financial Data and Key Metrics Changes - Q3 2025 marked the strongest quarter in Gorilla's history with revenue exceeding expectations and operating profit turning positive, resulting in a breakeven bottom line [2][12] - The company reported a cash position of over $121 million, with $109 million being unrestricted cash and $15.1 million in debt, leading to a net cash position of $106 million [3][4] - For 2025, the revenue guidance is set between $100 million and $110 million, with EBITDA margins expected to be over 20% and net income margins between 15% and 20% [4][5] - The gross margins for the first nine months were slightly over 35%, with expectations to reach the 35%-40% range for the full year [4] Business Line Data and Key Metrics Changes - The company is advancing AI infrastructure programs across Southeast Asia, Latin America, and the Middle East, securing multi-billion dollar projects [2] - The signed contract with Freyr is valued at $1.4 billion, contributing over $400 million annually once fully operational [7][8] - The company anticipates that over 50% of revenue will come from Southeast Asia next year, with a good mix between government and enterprise clients [8][9] Market Data and Key Metrics Changes - The company has a strong pipeline of $7 billion, primarily driven by government and telco contracts focused on national AI and digital sovereignty strategies [16][53] - The demand for GPU servers is high globally, with supply chain constraints being a significant challenge [38] Company Strategy and Development Direction - Gorilla aims to diversify its business and reduce reliance on government contracts, focusing on a mix of government and enterprise clients [9] - The company is actively pursuing acquisitions in India and the U.S. to enhance capabilities and expand into high-growth markets [68][92] - The strategy includes building a unified AI infrastructure that integrates data centers, GPU services, and software solutions to create a sustainable revenue model [100][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural growth of the business, emphasizing that profitability is not a one-off event but a result of operational discipline [14][15] - The company is optimistic about the future, with a clear backlog and a demand curve that exceeds current guidance [17] - Management highlighted the importance of operational readiness and the ability to scale as customer demand increases [39] Other Important Information - The company has improved its credit quality and is now in a strong net cash position, allowing it to fund significant new deployments [10][11] - The management team has a proven track record, with revenue increasing significantly since going public in 2022 [10] Q&A Session Summary Question: What are the assumptions for the 2026 guidance regarding the large deal contribution? - The guidance for 2026 is based on contracted backlog and the first phase of the Southeast Asia data center project, which alone contributes $100 million from 2026 to 2028 [22] Question: Any color on EBITDA margins for 2026? - The guidance for EBITDA margins is in the range of 15%-25% [26] Question: Can you provide more detail on deliverables for the large contract in 2026? - The first $100 million is expected to come from a phased rollout of data center capabilities, with revenue ramping up as infrastructure is commissioned [28] Question: How does the company gauge potential upside in guidance? - There is more upside potential due to the timing of customer deployments and supply chain constraints, with a focus on getting programs live by 2026 [36][39] Question: What is the magnitude of the backlog? - The backlog is strictly defined at $85 million for 2026, with additional potential from ongoing negotiations and bids [47] Question: Why is Gorilla winning contracts against competitors? - Gorilla's long-standing relationships, operational discipline, and ability to deliver sovereign-grade AI infrastructure are key competitive advantages [56][58] Question: What are the plans for cash utilization? - The cash will be used for capital needs related to major contracts, including performance guarantees and working capital for data center projects [71] Question: How does the company plan to grow its sales team? - The current sales team is well established, and the CEO is personally involved in key customer engagements [66] Question: What is the strategic role of the company in the AI compute infrastructure? - Gorilla is building a comprehensive AI infrastructure, integrating data centers, GPU services, and software to create a sustainable revenue model [100][102]

Policy & Regulation - Germany will exclude Chinese suppliers like Huawei from future telecommunication networks due to security concerns [1] - The decision is driven by Germany's push for more digital sovereignty [1]

Core Insights - The Web Summit has evolved from a small startup event in 2015 to a major global technology conference, highlighting the rapid changes in the tech landscape over the past decade [2] - The event attracted 70,000 attendees from 75 countries, including government representatives, entrepreneurs, and tech investors, marking a significant increase in participation [2] - The founder of Web Summit emphasized the rise of Chinese AI models and Brazil's PIX payment system as key examples of global shifts in technology and finance, challenging the dominance of Western tech companies [3][4] Technology and Innovation - The emergence of advanced humanoid robots and leading AI models from China was showcased, indicating a shift in technological leadership [3] - The PIX payment system from Brazil is described as revolutionary and free, posing a challenge to existing Western payment systems [4] - The decline of German startups at the Web Summit contrasts with the rise of Polish startups, indicating a shift in the entrepreneurial landscape within Europe [4][5] Economic and Cultural Shifts - Lisbon is positioning itself as a hub for innovation and culture, with significant growth in tech companies and job creation [7][8] - The city has seen the establishment of 16 unicorns and 82 tech companies, contributing to over 16,000 jobs [8] - The mayor of Lisbon highlighted the importance of social justice and cultural integration in fostering innovation [9][10] Future Outlook - Portugal aims to become a global innovation hub, leveraging technology to enhance governance and create opportunities [11][12] - The government is investing in digital infrastructure and skills training to prepare citizens for a tech-driven future [12][13] - The establishment of an AI super factory in Portugal is seen as a response to the dominance of Silicon Valley, aiming to enhance Europe's digital sovereignty [13]

Core Insights - European organizations are increasingly prioritizing control over data and infrastructure, driving demand for sovereign AI solutions [1][4] - 62% of organizations in Europe are seeking sovereign solutions due to geopolitical uncertainties, with higher interest in Denmark (80%), Ireland (72%), and Germany (72%) [1] - Sectors with regulatory requirements, such as banking (76%), public service (69%), and utilities (70%), are leading the adoption of sovereign AI [1] - Approximately 60% of European organizations plan to increase investments in sovereign AI technology, particularly in Germany (73%), Italy (71%), and Switzerland (64%) [1] - Only 36% of AI initiatives in European organizations currently require a sovereign approach due to regulatory or data sensitivity [1] Industry Trends - Organizations are balancing data control with the need for access to technological advancements, with 65% acknowledging the necessity of non-European tech providers for competitiveness [1] - 57% of organizations are exploring the feasibility of sovereign solutions from both European and non-European providers [2] - Accenture is collaborating with AI infrastructure providers like Nebius to support the establishment of sovereign AI factories in Europe [3] Strategic Considerations - The approach to sovereign AI is not about centralizing everything but making technology choices based on desired control levels over data and infrastructure [4] - Only 19% of organizations view sovereign AI as a competitive advantage, while 48% cite compliance as the main motivation for adoption [4] - There is a call for governments and institutions to enhance Europe's digital sovereignty through regulations and public investments, with 73% of organizations supporting this [4] Role of SMEs - Small and medium enterprises are considered critical for accessing sovereign solutions, with 70% of organizations recognizing their importance [5] Research Basis - The findings are based on a survey of 1,928 organizations across 28 countries and 18 industries, conducted in July-August this year [6] Recommendations - Sovereign AI should be a CEO-led priority, aligning AI strategy with enterprise risk and geopolitical realities [7] - Organizations should view sovereignty as a source of value creation rather than just risk mitigation [7] - Companies are encouraged to build hybrid ecosystems that combine local trust with global innovation [7] - Firms need to embed sovereignty into every layer of AI architecture for resilience and adaptability [7]

Core Insights - Zadara and Micro Support Group (MSG) have formed a strategic partnership to offer Zadara-powered multi-tenant AI clouds and sovereign cloud solutions, enhancing enterprise infrastructure modernization [1][2][4] Company Overview - Zadara is a leading provider of sovereign AI edge clouds, offering a distributed cloud platform that simplifies operational complexity and enables seamless multi-tenancy [4][5] - Micro Support Group (MSG) has over 40 years of experience in delivering secure IT strategies and is recognized for its commitment to client success [2][7] Partnership Benefits - The collaboration allows MSG to integrate Zadara's cloud platform, enabling organizations in the Northeast to run various workloads, including enterprise AI with strict digital sovereignty [2][3] - Zadara's distributed edge cloud architecture provides an alternative to VMware, catering to customers needing to scale AI workloads or requiring sovereign cloud solutions [3][5] Technical Features - Zadara's fully managed, AWS-compatible clouds feature consumption-based pricing and no egress fees, offering flexibility and predictable costs for MSG customers [3][5] - Zadara operates over 500 edge cloud locations globally, capable of deploying clouds in any location to meet diverse cloud-based use cases [5][6] Support and Services - Zadara provides 24/7 support and services through a highly skilled team, ensuring enterprise-grade reliability for its cloud solutions [3][6]

RT Bloomberg Live (@BloombergLive)NEXT WEEK: #BloombergTech returns to London and this year we will be exploring Europe’s path to digital sovereignty.Hear directly from leading executives, policymakers and innovators shaping the future of technology.https://t.co/Q9ZpbUIBzE https://t.co/6DeZbLHgmM ...

Core Insights - The European Union is actively working to reduce reliance on US Big Tech by developing sovereign cloud solutions in collaboration with local partners in countries like France and Norway [1][2] - The UK is becoming increasingly viewed as a satellite of US tech dominance, raising concerns about data sovereignty and the implications for local businesses [2][10] - The recent UK-US Tech Prosperity Deal aims to enhance the UK's tech ecosystem by providing access to US datasets, infrastructure, and collaborative research opportunities [6][7] Investment and Infrastructure - Significant investments from US tech companies include a $30 billion commitment from Microsoft for a supercomputer, a $5 billion investment from Google for a new data center, and additional investments from CoreWeave and others [5] - The focus of these investments is primarily on data center construction, which creates jobs mainly during the build-out phase rather than in ongoing management [3] - Concerns have been raised about the potential diversion of local energy and water resources to support these large-scale data centers [3] Digital Sovereignty and Business Implications - Digital sovereignty is becoming a critical issue for UK businesses, with 73% of SMEs expressing concerns about data being stored in the US [10][12] - The US Cloud Act allows US law enforcement to access data stored overseas by US companies, further complicating the data sovereignty landscape [11] - Trust in data sovereignty is increasingly influencing procurement decisions and customer relationships, with local providers seen as more reliable [13][14] Opportunities for UK Tech - There is a growing opportunity for UK companies to establish themselves as sovereign AI infrastructure providers, as digital sovereignty becomes a priority for businesses [15][16] - The demand for local and sovereign infrastructure is expected to remain strong, particularly among enterprises in Europe and the Middle East [17][19] - UK businesses are encouraged to focus on innovation and building local capabilities to compete with US tech giants [24][25]