SAP said on 4 May that it had agreed to acquire Prior Labs, a Freiburg-based developer of tabular foundation models, and would invest more than €1bn in the company over four years.
Why SAP SE is buying Prior Labs
SAP said large language models struggle to make accurate predictions on structured business data, while tabular foundation models can forecast outcomes such as payment delays, supplier risks and customer churn. It plans to productise Prior Labs' work through SAP AI Core, SAP Business Data Cloud and its Joule agent layer, building on its own SAP-RPT-1 model.
“Joining the SAP family gives us the resources, data environment and customer reach to take this category to its full potential.”
Deal terms and financing
Financial terms were not disclosed. SAP said it remains committed to Prior Labs' open-source strategy around TabPFN.
Regulatory approvals and timing
The deal required regulatory approval and was expected to close in the second or third quarter of 2026; SAP said on 17 July that it had completed it.
Market context
Prior Labs was founded in 2024 by Frank Hutter, Noah Hollmann and Sauraj Gambhir and raised €9m in its only funding round from investors including Balderton Capital, Atlantic Labs and XTX Ventures. SAP announced the purchase of US data lakehouse company Dremio on the same day.
