SAP completed the acquisition of German AI startup Prior Labs for over €1 billion.
The transaction closed 18 months after the startup’s founding. Prior Labs specializes in Tabular Foundation Models (TFMs) for structured enterprise data. These models improve business forecasting for supplier risk and customer churn.
SAP will invest an additional €1 billion into the entity. This funding will be distributed over the next four years. The capital aims to scale Prior Labs into a leading frontier AI lab.
Prior Labs will operate independently under its own brand and leadership. The startup will maintain its open-source research and existing customer relationships. This acquisition integrates Prior Labs’ models with SAP’s enterprise data ecosystem to accelerate AI development.