SAP has signed a definitive agreement to acquire Prior Labs, a Freiburg-based AI startup focused on foundation models for structured business data. Financial terms of the deal were not disclosed, but SAP said it will invest more than €1 billion over the next four years to expand Prior Labs into a frontier AI lab in Europe.
Founded in Germany, Prior Labs is known for its TabPFN model series, which is designed for tabular data rather than text. SAP said the acquisition will support further research in tabular foundation models and help bring the technology into products across its software portfolio.
The deal highlights growing competition around enterprise AI systems built for business data, an area where conventional large language models have often struggled. The transaction is subject to regulatory approval and is expected to close in the second or third quarter of 2026.
Founded in Germany, Prior Labs is known for its TabPFN model series, which is designed for tabular data rather than text. SAP said the acquisition will support further research in tabular foundation models and help bring the technology into products across its software portfolio.
The deal highlights growing competition around enterprise AI systems built for business data, an area where conventional large language models have often struggled. The transaction is subject to regulatory approval and is expected to close in the second or third quarter of 2026.