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SAP invests $1.16 billion in artificial intelligence

SAP invests $1.16 billion in artificial intelligence

German software giant SAP has announced the acquisition of startup Prior Labs to advance artificial intelligence technologies. The company plans to invest 1 billion euros (approximately $1.16 billion) into this project over the next four years. These funds will be directed toward creating AI models that work with corporate databases and spreadsheets. This is reported by Techcrunch.com reports .

Although Prior Labs was founded just 18 months ago, the company has attracted attention with its innovations in tabular foundation models (TFM). These models are considered much more effective than traditional language models for systems like SAP, which handle accounting, HR, and expense management. Founded by Frank Hutter, Noah Hollmann, and Sauraj Gambhir, the startup is a strategic acquisition for SAP.

At the same time, SAP is pursuing a strict policy against unauthorized AI agents to protect its ecosystem. The company only allows architectures labeled as "SAP-endorsed" through its API system. Specifically, NVIDIA's NemoClaw tool is approved by SAP, and customers can utilize this technology.

SAP leadership views artificial intelligence as both a threat and a major opportunity. The company has previously invested in major AI firms such as Anthropic, Aleph Alpha, and Cohere. According to SAP CTO Philipp Herzig, the company's primary goal is to develop the most effective AI solutions for the structural data that powers global business.

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