Digital Economy News | July 2025

Germany a Major Quantum Computing Force, Companies Form Consortium to Industrialize Future Technology

Germany has a leading role to play in tomorrow’s quantum computing market. A recent McKinsey position paper foresees a major role for Europe in the quantum technology and applications market – a market that the consultancy giants believe will be worth up to USD 2 trillion by 2035. The report finds that only China has invested more in quantum technologies than Germany, which had public spending to the tune of USD 5.2 billion by the end of 2023. Germany is likewise a global patent leader, behind only the USA and Japan in terms of patents registered for the period 2000 to 2023.  Germany is also among the world leaders in research on quantum computer software and algorithms. A number of leading German companies have joined forces to create the Quantum Technology and Application Consortium (QUTAC) to bring quantum computing to the level of large-scale industrial application, strengthen Germany’s digital sovereignty and position themselves as the market for this crucial future technology takes shape. Quantum technologies are set to transform a number of sectors including security, logistics, chemistry, pharmaceuticals, finance, and mobility. 

Quantum Algorithms Optimize Airport Operations 

Researchers at the Institute for Quantum Physics at Universität Hamburg and IT provider Lufthansa Industry Solutions have joined forces to develop quantum algorithms to optimize airport operations. Together they are seeking to resolve the “airport gate assignment problem” experienced at airports around the world. “With five available gates and one airplane, there are only five assignment options. In this case, the flight manager has it easy. With five gates for two airplanes, there are still 25 options. Airports, however, are generally larger. With 15 gates and 10 airplanes, there are more than 570 billion possibilities,” explains Dr. Joseph Doetsch, Quantum Computing Lead at Lufthansa Industry Solutions.  The complexity of the calculations means that conventional computers quickly reach their limits. The creation of a quantum algorithm that is scalable and accounts for real-life boundary conditions at airports should make real-time solutions a near reality as airports seek to maximize time management and efficiency for optimal gate allocations. The project will be funded for three years as part of the quantum computing initiative of the Hamburg Investment and Development Bank (IFB). 

SAP Founder Plans 2035 Megaproject to Develop Leading Computer Sciences Institute

SAP founder Hasso Plattner has announced plans to significantly expand the Hasso Plattner Institute HPI) to create a Europe-wide leading institute for digital sciences. As part of the ambitious plans, the University of Potsdam will release buildings for use at its Griebnitzsee campus and will receive a new campus in the center of Potsdam in return. New study programs, international cooperation and AI research are at the heart of the planned activities. Construction is expected to be completed by 2035 according to the signatories of the memorandum of understanding including the state of Brandenburg, the University of Potsdam and Plattner’s foundation. The HPI was established in 1999 as a public-private partnership between the foundation and the state of Brandenburg. The institute currently has 34 available professorships, with plans to double this number on completion of the project in order to establish it among the top tier of computer science faculties in Germany. 

Industry Seeks Government Support to Build AI Gigafactory

Industry sources report that board members from Ionos, SAP, the Schwarz Group and Deutsche Telekom hope to meet Germany’s new digital minister Karsten Wildberger to kickstart plans to build an AI gigafactory in Germany. The European Commission has identified AI gigafactories as a strategic priority as part of its AI Innovation package. The proposed AI gigafactories will have – with around 100,000 state-of-the-art AI chips – four times more computing power than existing AI factories. The prohibitive costs associated with AI gigafactory production means that up to 35 percent of investment will be made available from the public purse, with participating companies and investment funds providing the remainder. The companies hope that the government will align the interests of the involved companies and federal states (who have pursued their own initiatives to date) and implement industrial policy measures to ensure that AI gigafactories built on German soil become an economically viable proposition. 

ChatGPT Product Boss Sees Germany as Global AI Leader

OpenAI’s Head of Product for ChatGPT Nick Turley has claimed that Germany counts among the global leaders in AI adoption, with the country among the top three of paying ChatGPT subscribers globally. Speaking to German business daily Handelsblatt, Turley claimed that this runs counter to the popular misconception that Germany is falling behind in the AI race. In fact, Germany ranks among the global top four in terms of business use and has the most developers working with ChatGPT models outside the US. In May of this year, ChatGPT opened its first German office in Munich in Bavaria. 

Bosch to Invest EUR 2.5 Billion in AI Through to 2027

German concern Bosch has announced plans to invest EUR 2.5 billion in AI activities through to 2027. Artificial intelligence plays a central role in the development of Bosch products and services, with the company stating that AI investment will help automated driving safer, quality checks in manufacturing more reliable and improve everyday life for consumers.  Specific focus will be attached to language model-based “Agentic AI „that allows independent decisions to be made. Bosch is already using multi-agent systems in production to monitor devices, predict maintenance requirements and optimize personnel planning. The company expects this to generate savings of up to one billion euros.

Germany to Increase Games Funding in 2026

Starting in 2026, Germany’s federal government will increase the funding budget for the domestic games industry to EUR 125 million annually. The draft budget for 2025 allocates EUR 88 million to the sector. The funding is made available to support game development including prototypes and full production and publishing activities. Specialized “games labs” where developers can test their games on a number of platforms have been set up to support the practical assessment of projects funded. 

Proofpoint Acquires Hornetsecurity in Billion Dollar Deal

US cybersecurity and compliance company Proofpoint has acquired Hanover-based Hornetsecurity Group for an undisclosed sum believed to be in the billion-dollar range. Hornetsecurity is a leading pan-European provider of AI-powered Microsoft 365 security, data protection, compliance, and security awareness services. The acquisition allows Proofpoint to provide human-centric security to SMEs through managed service providers. The acquisition is financially backed by investment firms TA Associates, PSG Equity, and Verdane. The deal is expected to be finalized in the second half of 2025.