SAP to acquire Dremio and Prior Labs for enterprise AI

SAP announced plans to acquire analytics platform Dremio and tabular foundation model developer Prior Labs as part of an effort to expand its enterprise data and AI capabilities. Both transactions are expected to close in the second or third quarter of 2026 and require regulatory approval. SAP did not disclose financial terms.

SAP said the Dremio acquisition will be integrated into its Business Data Cloud and SAP HANA Cloud offerings. Dremio’s lakehouse platform is intended to let customers access SAP and non‑SAP data without creating multiple copies, reducing the need for complex data movement and transformation. The company said Dremio’s serverless architecture will help support larger analytics and AI workloads at lower cost.

SAP also committed to continue investing in the open source projects that support the Dremio platform, including Apache Iceberg, Apache Polaris and Apache Arrow. The company said the integration aims to provide a single platform for governed, AI‑ready datasets to support real‑time analytics and downstream AI workloads.

The Prior Labs acquisition focuses on models for structured, tabular data. Prior Labs develops tabular foundation models designed to work with spreadsheets, financial records, inventory tables and other structured business datasets. SAP said Prior Labs will remain an independent business unit and that it will invest more than €1 billion over the next four years to scale the company into a global AI research hub.

SAP described the Prior Labs deal as a way to expand predictive modeling for structured enterprise data such as supply chain metrics, customer records and financial data. The company noted the work builds on SAP’s existing tabular AI efforts, including the SAP‑RPT‑1 model, and that combining Prior Labs’ models with SAP’s customer base and enterprise data is intended to increase adoption of tabular foundation models in business use cases.

Philipp Herzig, chief technology officer at SAP, said, “Enterprise AI doesn’t stall because the models aren’t good enough; it stalls because the data isn’t ready for AI agents.” He added that Prior Labs has built a strong tabular model and research team, and that pairing that work with SAP’s enterprise data and customers is the company’s planned approach to expand tabular AI capabilities globally.

Both deals are subject to regulatory clearance and customary closing conditions. SAP framed the acquisitions as part of a broader effort to offer a unified data and AI stack addressing infrastructure and modeling for structured data. Financial details and deal values were not released.