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SAP Acquires Prior Labs and Dremio to Expand Agentic AI Capabilities

agentic AI

SAP has acquired Prior Labs and Dremio to expand its agentic AI capabilities. The company will invest more than 1 billion euros over the next four years to establish a frontier AI lab in Europe. This strategy integrates specialized technologies to connect business data with autonomous, goal-oriented artificial intelligence.

The acquisition of Prior Labs focuses on Tabular Foundation Models (TFMs). These models are built for structured business data rather than text. SAP is using these models to improve its agentic AI systems, which helps them understand business relationships and causality in tabular datasets. Prior Labs is an independent entity that provides innovations for SAP Joule and the SAP AI Core.

Unifying Data for Agentic AI

SAP is also acquiring Dremio, a high-performance data lakehouse platform, to support these AI models. This acquisition reduces fragmentation between SAP and non-SAP data. SAP is creating an Apache Iceberg-native enterprise lakehouse to provide infrastructure for the SAP Knowledge Graph. This graph includes business relationships and data lineage to give AI agents a governed foundation for decisions.

Dremio’s serverless infrastructure handles AI workloads across different environments. SAP is turning the SAP Business Data Cloud into an open platform for AI-ready intelligence. This infrastructure is required for agentic AI to function, as these systems need fast access to cross-functional data to meet business goals.

Impact on Enterprise Automation

These acquisitions are a shift in enterprise automation. SAP is moving toward agentic AI systems that can complete business processes autonomously. The TabPFN tool from Prior Labs is part of SAP’s work with open-source AI development. This combination of research and data infrastructure allows the company to compete in the generative AI market for business.

As of May 4, 2026, SAP is scaling these technologies for enterprise use. The European frontier AI lab is the center for this work, turning research into tools for global customers. The deal makes the SAP Business Data Cloud a environment for autonomous business applications.

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