SAP is taking over the AI startup Prior Labs and investing over one billion euros in the expansion of a new research laboratory.
The software company SAP is taking over the Freiburg AI startup Prior Labs. The aim is to advance the development of so-called Tabular Foundation Models (TFMs) – AI models that are specifically designed for structured company data.
Prior Labs will continue to operate independently. SAP plans to invest more than one billion euros in the next four years to become a world-leading AI research laboratory. Financial details of the deal were not disclosed; closing is still subject to regulatory approvals and is expected in 2026.
With the takeover, SAP wants to strengthen its position in the area of business AI. TFMs are considered a promising approach to evaluating classic business data – such as customers, supply chains or payments – more precisely than previous AI models.
The Prior Labs team, founded by Frank Hutter, Noah Hollmann and Sauraj Gambhir, will play a central role in this. The company is supported by AI pioneer Yann LeCun, among others.
The move is seen as a strategic bet on a new AI category beyond classic language models – with a focus on the data that forms the core of many companies.