Prior Labs

Enterprise AI · Tabular/Structured Data · Foundation Models

Acquisition

SAP completes Prior Labs buyout, pledges over €1B for tabular AI

The actual purchase price stays undisclosed, showing SAP is betting on future research capacity rather than paying for a fixed valuation.

• SAP SE announced it has completed its acquisition of Prior Labs, a German pioneer of Tabular Foundation Models, just 18 months after the startup was founded.
• Founded by Frank Hutter, Noah Hollmann and Sauraj Gambhir and based in Freiburg, Berlin and New York, Prior Labs built TabPFN, a foundation model trained specifically on spreadsheet- and database-style tabular data rather than text or images.
• Financial terms of the deal itself were not disclosed; instead, SAP is committing more than €1 billion in investment over the next four years to fund infrastructure, hiring and long-term research at the lab.
• Prior Labs will keep operating under its own brand, leadership and research agenda, continue publishing research and keep its models open source, rather than being folded directly into SAP's product teams.
• TabPFN, published in Nature, has become a benchmark for predictive modeling on structured data and is already used in financial risk scoring, railway predictive maintenance and cancer diagnostics.
• Prior Labs had raised only a €9 million pre-seed round in 2025 before this deal, illustrating how fast frontier AI labs can go from research project to nine-figure exit.
• While most AI investment chases chatbots built on text, this deal signals that predictive models trained on structured business data are becoming their own high-value category, and one of the rare frontier-AI wins for Europe.