SAP acquires Prior Labs to lead AI in structured business data with €1B investment.

SAP SE announced its agreement to acquire Prior Labs, a pioneer in Tabular Foundation Models (TFMs), enhancing SAP's AI capabilities for structured business data. The acquisition will accelerate SAP's development of AI models that predict business outcomes from tabular data, a key area where large language models fall short. Prior Labs will operate independently with SAP investing over €1 billion over four years to scale it into a leading AI research lab. The deal, pending regulatory approval, aims to integrate Prior Labs' advanced models into SAP's portfolio, enabling faster, more accurate business predictions and AI-driven insights.