Key point: SAP integrates TFM specialist Prior Labs and plans four billion euros in investments to establish a frontier AI lab for structured data.
SAP has finalized the acquisition of the Freiburg-based startup Prior Labs. The company specializes in Tabular Foundation Models (TFM), AI models for structured business data rather than free text, and is intended to strengthen SAP’s strategy for enterprise-relevant data analytics.
SAP has completed the acquisition of Prior Labs. The Freiburg-based startup was founded in 2024 and is regarded as a pioneer in Tabular Foundation Models – a model type specifically trained on structured business data. Unlike classical Large Language Models, TFMs work with payment delays, supplier risks, or customer churn rather than free text. The team’s TabPFN model, published in Nature, has been downloaded over four million times.
For CDOs and data stewards, this acquisition is highly relevant: SAP customers with large volumes of data in ERP systems now gain access to specialized AI models that make more practice-oriented predictions than generic LLMs. Prior Labs will be continued as an independent brand with its own open-source strategy and existing customer relationships, and in return receives access to SAP’s data assets and customer base.
SAP plans to invest more than one billion euros over the coming four years to develop Prior Labs into a global frontier AI lab for structured data. The purchase price has not been disclosed. This acquisition is part of a broader data offensive: SAP already acquired Reltio (data management) and Dremio (data management) in 2024. With this, SAP is deliberately positioning itself as a business AI provider and strengthening its data foundation for enterprise-relevant AI applications.
Source: www.it-daily.net · Published 20 July 2026
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