German AI startup Prior Labs has been acquired by SAP for more than €1 billion, just 18 months after the company was founded. The deal marks one of the fastest exits in European AI history.
Prior Labs, based in Heidelberg, developed AI-powered enterprise software that SAP plans to integrate into its broader cloud and business applications portfolio. The startup had raised a modest seed round before catching the attention of the Walldorf-based software giant.
The acquisition reflects SAP’s aggressive push to embed AI capabilities across its product suite, which serves more than 400,000 customers worldwide. SAP has been investing heavily in AI, launching its own AI assistant Joule and partnering with several AI startups.
For Prior Labs’ founders and early investors, the exit represents a remarkable return in under two years. The deal also signals that European enterprise software giants are willing to pay premium prices for AI talent and technology rather than building it themselves.
“This is a landmark moment for the German AI ecosystem,” one industry observer told Tech.eu. “It shows that you can build a valuable AI company in Europe and exit to a global leader without moving to the US.”
