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Does SAP disprove the rule that Europe can’t scale tech companies?

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The largest and best-known U.S. tech stocks are sometimes labelled ‘The Magnificent Seven’, after the Hollywood action franchise featuring multiple lead roles. An equivalent movie-based metaphor for big tech in Europe would have a cast of one—think The Bourne Identity’s Jason Bourne or Alien’s Ellen Ripley.

Because while investors in America (and increasingly China too) have many large and fast growing tech companies from which to choose, in Europe there is really only one firm that in scale and reach can stand comparison with the likes of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. That is Germany’s SAP, or as it is sometimes known, Der Eine (The One).

Not only is the firm—a specialist in back-office enterprise resource planning (ERP) software—Europe’s biggest tech company, it is also the continent’s most valuable company full stop, with a market capitalization approaching €300 billion, having overtaken previous incumbent, Danish pharma darling Novo Nordisk, in March this year.

It stands in 450th place on the Fortune Global 500 list, employs 109,000 people in over 130 different countries and boasts a stellar customer list that includes 98 of the world’s 100 largest companies.

One of the secrets to SAP’s success is understanding that in technology, there is never a good time to rest on your laurels, says chief operating officer Sebastian Steinhauser. “We remind ourselves every day that tech is the most competitive industry on earth. With every new wave of innovation the tech space is redefined, new companies pop up and you have to prove yourself again. I am very happy with that.”

113 SAP’s rank on the Fortune 500 Europe

SAP’s latest wave of change is moving both its own processes and those of its customers away from traditional (and expensive), bespoke on-site databases and into the cloud. The pivot began in 2020, and—despite some criticism that it was late to the party, which came with an initial 30% slump in the share price—it has proved to be a pretty smart move. Cloud migration is a proverbial win-win that cuts upfront costs and accelerates implementation for users, whilst also generating stable and predictable new revenues for SAP itself.

It’s also proof that despite received wisdom to the contrary, you don’t always have to be an early adopter to win in tech.

“You have to remember that the ERP system is the most critical software asset for any customer. There is a lot of trust involved in running that system,” says Steinhauser. “If the CRM [customer relationship management software] doesn’t work for an hour or so, it’s inconvenient. But if the ERP stops working then your entire business stands still.”

A strategy for AI

A consequence of this is that SAP customers generally prefer a proven solution that is a follower over one that is cutting-edge but untried.

SAP estimates that completing the cloud transformation will underwrite ongoing revenue growth until 2030, providing a welcome runway to prepare for the next wave of change—AI. “Our flagship offer for cloud migration is called Rise with SAP. It’s really a transformation that starts with moving your ERP to the cloud. The whole journey that follows is also about simplifying business processes, building AI use cases and expanding across our integrated suite to avoid cost and build business capability,” says Steinhauser.

“We remind ourselves every day that tech is the most competitive industry on earth…”Sebastian Steinhauser, chief operating officer at SAP

In terms of AI, he sees the greatest opportunities, both for SAP and for Europe as a whole, in application rather than development. “There has been a wave of AI experimentation, but now the real challenge is in AI adoption and value creation,” he says. So as AI technology matures, competitive advantage will be less about who has the best tech and more about who gets the most out of their data. “The real differentiation will be in the context rich data you can feed in.”

SAP already has a ton of great data—integrating it all so that AI agents can get to work extracting value for its clients is what deals like the much-vaunted tie-up with data intelligence platform Databricks is all about. “It’s the perfect example of our strategy. We partner with the best technology out there and then apply it to solve the most pressing business problems,” Steinhauser says.

The SAP story may lack the Silicon Valley glitz of go-to corporate tech reinventions like Apple and Microsoft, but it is no less radical, says Gary Dushnisky, professor of strategy and entrepreneurship at London Business School. “SAP has exercised amazing foresight in some of the strategies they have developed, and they have also managed to reinvent themselves two or three times. That’s something that many other companies have failed to do.”

Besides, SAP’s real commercial rivals are not so much the megacorps of the Magnificent Seven (many of whom are SAP users themselves) but rather enterprise service platform providers like Oracle, ServiceNow and Monday.com for back office and workflow automation, and also Salesforce, which specializes in CRM but is increasingly meeting SAP in a battle to own the complete ‘customer experience’.

Out-competing them requires a certain counter-intuitive lack of interest, says Steinhauser. “Ultimately I am not that interested in what this competitor or that competitor is doing, because that is not what makes SAP unique. I am much more interested in how customer expectations evolve with technology.”

Europe’s missing tech giants

Why aren’t more of SAP’s rival companies European? The stock answer is that European companies simply aren’t as ambitious, but that is too simplistic for Dushnitsky. He highlights structural differences such as the huge disparity in the financial firepower available in the U.S. and increasingly Asia, compared to Europe.

“There has been a wave of AI experimentation, but now the real challenge is in AI adoption and value creation.”Sebastian Steinhauser

This makes it much more likely that promising European companies will be acquired by U.S. ones before they can go global than the other way round. Another related difference is in American founders’ inclination to rebuff would-be acquirers rather than give in to them: having the nerve to say ‘no’ when a tempting offer is on the table.

“Mark Zuckerberg said no, Sergey Brin said no. Across the globe, people who are able to build these large organizations are people who want to build, rather than wanting to sell out,” Dushnitsky observes.

Rather than blaming the companies, Steinhauser says that it is the environment they operate in that needs attention. “I’m a passionate European, and Europe has all the ingredients. Some of the best talent, the best universities and the best research in the world are in Europe”.

But the continent loses out in other ways. For example, as the Draghi report on European competitiveness detailed, tech companies looking to expand across Europe must negotiate no fewer than 100 regulations relating to software, and 270 regulatory bodies. “We’d love to see five more SAP’s, but unfortunately I think [in Europe] we are still more focused on creating barriers to innovation,” Steinhauser says. 

Ultimately, focusing too much on questions of origin and location can hinder rather than facilitate growth ambitions, Steinhauser concludes. “I think part of SAP having achieved the scale we have is that we never defined ourselves as German or European, but as a global tech company having to compete with other global technology companies, 99% of which sit in the U.S.”

Europe lags the U.S. and China in key growth sectors due to costly energy and stalled market reforms. This article series explores how technology, regulation, and innovation can revive its competitiveness.



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The $124 trillion Great Wealth Transfer is intensifying as inheritance jumps to a new record

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Nearly $300 billion was inherited this year as the Great Wealth Transfer picks up speed, showering family members with immense windfalls.

According to the latest UBS Billionaire Ambitions Report, 91 heirs inherited a record-high $297.8 billion in 2025, up 36% from a year ago despite fewer inheritors.

“These heirs are proof of a multi-year wealth transfer that’s intensifying,” Benjamin Cavalli, head of Strategic Clients & Global Connectivity at UBS Global Wealth Management, said in the report.

Western Europe led the way with 48 individuals inheriting $149.5 billion. That includes 15 members of two “German pharmaceutical families,” with the youngest just 19 years old and the oldest at 94.

Meanwhile, 18 heirs in North America got $86.5 billion, and 11 in South East Asia received $24.7 billion, UBS said.

This year’s wealth transfer lifted the number of multi-generational billionaires to 860, who have total assets of $4.7 trillion, up from 805 with $4.2 trillion in 2024.

Wealth management firm Cerulli Associates estimated last year that $124 trillion worldwide will be handed over through 2048, dubbing it the Great Wealth Transfer. More than half of that amount will come from high-net-worth and ultra-high-net-worth people.

Among billionaires, UBS expects they will likely transfer about $6.9 trillion by 2040, with at least $5.9 trillion of that being passed to children, either directly or indirectly.

While the Great Wealth Transfer appears to be accelerating, it may not turn into a sudden flood. Tim Gerend, CEO of financial planning giant Northwestern Mutual, told Fortune’s Amanda Gerut recently that it will unfold more gradually and with greater complexity

“I think the wealth transfer isn’t going to be just a big bang,” he said. “It’s not like, we just passed peak age 65 and now all the money is going to move.”

Of course, millennials and Gen Zers with rich relatives aren’t the only ones who sat to reap billions. More entrepreneurs also joined the ranks of the super rich.

In 2025, 196 self-made billionaires were newly minted with total wealth of $386.5 billion. That trails only the record year of 2021 and is up from last year, which saw 161 self-made individuals with assets of $305.6 billion.

But despite the hype over the AI boom and startups with astronomical valuations, some of the new U.S. billionaires come from a range of industries.

UBS highlighted Ben Lamm, cofounder of genetics and bioscience company Colossal; Michael Dorrell, cofounder and CEO of infrastructure investment firm Stonepeak; as well as Bob Pender and Mike Sabel, cofounders of LNG exporter Venture Global.

“A fresh generation of billionaires is steadily emerging,” UBS said. “In a highly uncertain time for geopolitics and economics, entrepreneurs are innovating at scale across a range of sectors and markets.”



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Apple rocked by executive departures, with chip chief at risk of leaving next

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Apple Inc., long the model of stability in Silicon Valley, is suddenly undergoing its biggest personnel shake-up in decades, with senior executives and key engineers both hitting the exits.

In just the past week, Apple’s heads of artificial intelligence and interface design stepped down. Then the company announced that its general counsel and head of governmental affairs were leaving as well. All four executives have reported directly to Chief Executive Officer Tim Cook, marking an exceptional level of turnover in Apple’s C-suite. 

And more changes are likely coming. Johny Srouji — senior vice president of hardware technologies and one of Apple’s most respected executives — recently told Cook that he is seriously considering leaving in the near future, according to people with knowledge of the matter. Srouji, the architect of Apple’s prized in-house chips effort, has informed colleagues that he intends to join another company if he ultimately departs.

At the same time, AI talent has been fleeing for tech rivals — with Meta Platforms Inc., OpenAI and a variety of startups poaching many of Apple’s engineers. That threatens to hamper the company’s efforts to catch up in artificial intelligence, an area where it’s struggled to make a mark. 

It all adds up to one of the most tumultuous stretches of Cook’s tenure. Though the CEO himself is unlikely to leave imminently, the company has to rebuild its ranks and figure out how to thrive in the AI era. 

Within the company, some of the departures are cause for deep concern — with Cook looking to stave off more with stronger compensation packages for key talent. In other cases, the exits just reflect the fact that veteran executives are nearing retirement age. Still, many of the shifts constitute a disconcerting brain drain.

While Cook maintains that Apple is working on the most innovative product lineup in its history — a slate that’s expected to include foldable iPhones and iPads, smart glasses, and robots — Apple hasn’t launched a successful new product category in a decade. That leaves it vulnerable to poaching from a range of nimbler rivals better equipped to develop the next generation of devices around AI.

A spokesperson for Cupertino, California-based Apple declined to comment.

The exit of Apple’s AI chief, John Giannandrea, followed a number of stumbles in generative AI. The company’s Apple Intelligence platform has suffered from delays and subpar features. And a highly touted overhaul to the Siri voice assistant is roughly a year and a half behind schedule. Moreover, the software will rely heavily on a partnership with Alphabet Inc.’s Google to fill the gaps in its capabilities.

Against that backdrop, Apple began phasing Giannandrea out of his role in March but is allowing him to remain until next spring.

Within Apple, employees have long expected Giannandrea to step aside — and some have expressed surprise that he’s sticking around as long as he is.

But parting ways with Giannandrea sooner would have been taken as public acknowledgment of a problem, people familiar with the situation said. 

Design veteran Alan Dye, meanwhile, is heading to Meta’s Reality Labs unit — a remarkable defection to one of Apple’s fiercest rivals.

Within a day of that news, Apple turned around and announced that it had poached one of Meta’s executives. Jennifer Newstead, chief legal officer at the social networking company, will become Apple’s general counsel. She helped oversee Meta’s successful antitrust battle with the US Federal Trade Commission — experience that’s likely to prove useful in Apple’s own legal fight with the Justice Department over alleged anticompetitive practices.

Read More: Apple Taps Meta Lawyer as General Counsel in Latest Shake-Up

Newstead is taking over for Kate Adams, who served eight years in the role and will retire in late 2026. Lisa Jackson, vice president for environment, policy and social initiatives, is retiring as well — and her duties will be divided up among other executives. 

Though the news of Adams’ departure was jarring — especially considering the number of Apple legal disputes currently on her plate — she’s had a fairly long tenure for a general counsel at the company.

Jackson, meanwhile, was widely expected to be leaving soon. The former Obama administration official has kept a lower profile during President Donald Trump’s second term, opting to dispatch deputies to handle discussions with the White House. Bloomberg News had previously reportedthat she was considering retirement.

These exits follow an even bigger departure. Jeff Williams, Cook’s longtime No. 2, retired last month after a decade as chief operating officer. Another veteran leader, Chief Financial Officer Luca Maestri, stepped into a smaller role at the start of 2025 and is likely to retire in the not-too-distant future.

The flurry of retirements reflects a demographic reality for Apple. Many of its most senior executives have been at the company for decades and are roughly the same age — either in their 60s or nearing it.

Cook turned 65 last month, fueling speculation that he would join the exodus. People close to the executive have said that he’s unlikely to leave soon, though succession planning has been underway for years. John Ternus, Apple’s 50-year-old hardware engineering chief, is considered by employees to be the frontrunner CEO candidate.

When Cook does step down, he’s likely to shift into the chairman job and maintain a high level of influence over the iPhone maker. That makes it unlikely that Apple will select an outsider as the next CEO, even as executives like Nest Labs founder Tony Fadell are being pushed as candidates by people outside the company. Though Fadell helped invent Apple’s iconic iPod, he left the tech giant 15 years ago on less-than-friendly terms. 

For now, Cook remains active at Apple and travels extensively on behalf of the company. However, the executive does have an unexplained tremor that causes his hands to shake from time to time — something that’s been discussed among Apple employees in recent months.

The shaking has been noticed by both executives and rank-and-file staff during meetings and large company gatherings, according to people familiar with the matter. But people close to Cook say he is healthy and refute rumors to the contrary that have circulated in Silicon Valley.

Read More: The Apple Insiders in the Running to Succeed Cook

A more imminent risk is the departure of Srouji, the chip chief. Cook has been working aggressively to retain him — an effort that included offering a substantial pay package and the potential of more responsibility down the road. One scenario floated internally by some executives involves elevating him into the role of chief technology officer. Such a job — overseeing a wide swath of both hardware engineering and silicon technologies — would potentially make him Apple’s second-most-powerful executive.

But that change would likely require Ternus to be promoted to CEO, a step the company may not be ready to take. And some within Apple have said that Srouji would prefer not to work under a different CEO, even with an expanded title.

If Srouji does depart, which isn’t yet a certainty, the company would likely tap one of his two top lieutenants — Zongjian Chen or Sribalan Santhanam — to replace him.

The recent shifts are already reshaping Apple’s power structure. More authority is now flowing to a quartet of executives: Ternus, services chief Eddy Cue, software head Craig Federighi and new COO Sabih Khan. Apple’s AI efforts have been redistributed across its leadership, with Federighi becoming the company’s de facto AI chief.

Ternus is also poised to take a starring role next year in the celebration of Apple’s 50th anniversary, further raising his profile. And he’s been given more responsibility over robotics and smart glasses — two areas seen as future growth drivers. 

Further reorganization is likely. Deirdre O’Brien, head of retail and human resources, has been with Apple for more than 35 years, while marketing chief Greg Joswiak has spent four decades at the company. Apple has elevated the key lieutenants under both executives, preparing for their eventual retirements.

At the same time, Apple is contending with a talent drain in its engineering ranks. This has become a serious concern for the executive team, and Apple’s human resources organization has been instructed to ramp up recruitment and retention efforts, people familiar with the situation said.

Robby Walker, who had overseen Siri and an initiative to build a ChatGPT-like search experience, left the company in October. His replacement, Ke Yang, departed after only weeks in the job, joining Meta’s new Superintelligence Labs.

To help fill the void left by Giannandrea, Apple hired Google and Microsoft Corp. alum Amar Subramanya as vice president of artificial intelligence. He’ll report to Federighi, the software chief.

But there’s been a broader collapse within Apple’s artificial intelligence organization, spurred by the departure of AI models chief Ruoming Pang. Pang, along with colleagues such as Tom Gunter and Frank Chu, went to Meta, which has used eye-popping compensation packages to lure talent.

Roughly a dozen other top AI researchers have left the organization, which is suffering from low morale. The company’s increasing use of external AI technology, such as Google’s Gemini, has been a particular concern for employees working on large language models.

Apple’s AI robotics software team has also seen widespread departures, including its leader Jian Zhang, who likewise joined Meta. That group is tasked with creating underlying technology for products such as a tabletop robot and a mobile bot.

The hardware team for the tabletop device, code-named J595, has been bleeding talent too — with some headed to OpenAI. Dye also was a key figure overseeing that product’s software design.

Read More: Apple’s AI Push to Hinge on Robots, Security, Lifelike Siri

The user interface organization has been hit as well, with several team members leaving between 2023 and this year. That attrition culminated in Dye’s exit, which stemmed partly from a desire to integrate AI more deeply into products and a feeling that Apple hasn’t been keeping pace in the area. Another top interface leader under Dye, Billy Sorrentino, also left for Meta.

The hardware side of the design group — the team responsible for the physical look and feel of Apple’s products — has been nearly wiped out over the last half-decade. Many staffers followed former design chief Jony Ive to his studio, LoveFrom, or went to other companies.

Longtime interface designer Stephen Lemay is now stepping in as Dye’s replacement. Cook is also taking on more responsibility for overseeing design, a role that had been held by Williams.

Ive, a visionary designer who helped create the iPhone, iPad and Apple Watch, is now working with OpenAI to develop a new generation of AI-enhanced devices. That company acquired Ive’s startup, io, for more than $6 billion to jump-start its hardware business — setting its sights on Apple’s territory.

Like Meta, OpenAI has become a key beneficiary of Apple’s talent flight. The San Francisco-based company has hired dozens of Apple engineers across a wide range of fields, including people working on the iPhone, Mac, camera technology, silicon design, audio, watches and the Vision Pro headset. 

In a previously unreported development, the AI company is hiring Apple’s Cheng Chen, a senior director in charge of display technologies. His purview included the optics that go into the Vision Pro headset. OpenAI recruited Tang Tan, one of Apple’s top hardware engineering executives, two years ago.

Read More: Apple’s Star Designer Who Introduced iPhone Air Leaves Company

And over the summer, the company lost the dean of Apple University, the internal program designed to preserve the company’s culture and practices after the passing of co-founder Steve Jobs. Richard Locke, who spent nearly three years at Apple, left to become dean of the Massachusetts Institute of Technology’s business school.



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Epstein grand jury documents from Florida can be released by DOJ, judge rules

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A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

___

Sisak reported from New York.



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