SAP to Acquire Prior Labs, Invest €1 Bn to Advance AI for Structured Data
Prior Labs has gained recognition for its TabPFN models, which have set new benchmarks in tabular AI and attracted strong adoption within the research and developer community.
SAP has signed a definitive agreement to acquire Prior Labs, marking a major step in its strategy to expand artificial intelligence capabilities focused on structured business data. Financial terms were not disclosed, and the transaction remains subject to regulatory approval.
Under the agreement, SAP will invest more than €1 billion over the next four years to support Prior Labs’ growth and accelerate the development of tabular foundation models—AI systems designed to work with structured datasets such as tables, spreadsheets, and enterprise records.
Prior Labs will continue to operate as an independent entity, retaining its brand, research-led approach, and open-source commitments.
"SAP moved early on tabular foundation models with RPT-1, before most of the enterprise software world had recognized the category existed. And critically, they understand what a frontier AI lab needs, which is why Prior Labs will continue as an independent legal entity and operate with autonomy," Co-founders Frank Hutter, Noah Hollmann, and Sauraj Gambhir wrote in a blog post.
By integrating Prior Labs’ capabilities, SAP aims to enhance how businesses analyse and derive insights from structured data across industries including finance, healthcare, and manufacturing.
Prior Labs has gained recognition for its TabPFN models, which have set new benchmarks in tabular AI and attracted strong adoption within the research and developer community. SAP said the partnership will enable faster progress toward more advanced systems capable of reasoning about causation, integrating domain expertise, and combining structured data with language-based AI.
The move builds on SAP’s early investments in tabular AI, including its RPT-1 model, and reflects growing demand for AI solutions tailored to enterprise data environments. With access to SAP’s global customer base and infrastructure, Prior Labs is expected to scale its research into real-world applications more rapidly.
“We built SAP-RPT-1 to prove that conviction for enterprise data. Prior Labs has built a leading TFM on public benchmarks and built one of the leading research teams in this category. Combining their frontier model work with enterprise data and customer reach is how we intend to lead this category globally,” Philipp Herzig, SAP CTO, added.
In March this year, SAP announced plans to acquire Reltio, a move aimed at strengthening its data management and AI capabilities as enterprises increasingly prioritise unified, trusted data for business decision-making.
