(Alliance News) - SAP SE on Monday said it will acquire Prior Labs amid a focus on tabular foundation models.

The Walldorf, Germany-based vendor of enterprise resource planning software said Prior Labs will continue to operate as an independent entity, with SAP committing to invest more than EUR1 billion over the next four years to scale it "into a globally leading frontier artificial intelligence lab for the structured data that runs the world’s businesses."

SAP said that large language models struggle to make accurate predictions on structured business data, noting "they have only a rudimentary understanding of tables, numbers and statistics." In contrast, tabular foundation models "are purpose-built for this type of data and can accurately predict business outcomes based on tabular data such as payment delays, supplier risks, upsell opportunities, customer churn risk and more."

Separately, SAP announced the acquisition of Dremio, an open data lakehouse platform built to speed up agentic AI.

SAP said Dremio helps eliminate data fragmentation and integration friction.

SAP said: "The Dremio lakehouse platform is set to vastly improve the economics of enterprise analytics. It is serverless and elastic, scaling up automatically when demand spikes and scaling back down when it subsides, meaning no fixed capacity to provision and no performance ceiling when it matters most."

The companies did not disclose terms of the deals.

SAP shares rose 1.5% to EUR147.63 each on Monday afternoon in Frankfurt.

By Tom Budszus, Alliance News slot editor

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