SAP to acquire Prior Labs, invest €1 billion in AI
SAP is making a big move in AI, plans to acquire Prior Labs for an undisclosed amount, while planning to invest €1 billion ($1.16 billion) into the business over the next four years.
Announced May 4, the investment will be made over 4 years.
Prior Labs (founded by Frank Hutter, Noah Hollmann, and Sauraj Gambhir) specializes in smart models that predict stuff from table-based data, which fits right into SAP's business software world.
Founders receive over $500 million upfront
More than $500 million goes straight to the founders upfront.
SAP plans to keep Prior Labs's popular open-source TabPFN models (already downloaded more than 3 million times) available to everyone, while also plugging their AI tech into SAP's HR and accounting tools.
At the same time, SAP is tightening up who can use its APIs (only approved AI agents like Joule Agents and NVIDIA's NemoClaw get access) to keep things secure but still push innovation.
The goal? Make Prior Labs Europe's leading hub for structured data AI and help SAP stay ahead in the enterprise tech game.