SAP to Acquire Prior Labs and Dremio

SAP SE, the Germany-based software giant, announced agreements on Thursday to acquire AI startup Prior Labs and data lakehouse platform provider Dremio, aiming to strengthen its capabilities in enterprise AI and structured data management. The deals, pending regulatory approval, are expected to close in the second or third quarter of 2026. Financial terms were not disclosed.

Under the agreements, Prior Labs will operate as an independent entity, with SAP committing more than 1.17 billion euros over the next four years to expand it into a global frontier AI research laboratory focused on tabular foundation models, or TFMs. These models are designed for structured business data, such as spreadsheets and databases, enabling predictions on outcomes like customer churn, payment delays, supplier risks and upsell opportunities. Unlike large language models, which struggle with numerical and statistical analysis, TFMs provide accurate, instant predictions without lengthy training.

Prior Labs, founded in late 2024 by Frank Hutter, Noah Hollmann and Sauraj Gambhir and based in Berlin and Freiburg, developed the open-source TabPFN tool, which has exceeded three million downloads. Its...