The deal, announced from Walldorf and Freiburg, includes more than €1bn over four years and is expected to close in Q2 or Q3 2026, pending regulatory approval.
Prior Labs will remain an independent unit focused on tabular foundation models, which SAP says outperform large language models on structured business data such as payment delays, supplier risks and customer churn.
SAP said the acquisition builds on its SAP-RPT-1 work, while Prior Labs brings its open-source TabPFN tools, top benchmark performance and scientific advisers including Yann LeCun and Bernhard Schoelkopf.
Can SAP's billion-euro AI bet overcome the known scaling limits of tabular models for real-world enterprise data?
Will Prior Labs' breakthrough AI research remain open, or will it become another one of SAP's corporate secrets?
When SAP's autonomous AI agents make costly financial errors, who will be held responsible for the fallout?