SAP to Acquire Dremio, Prior Labs in Enterprise AI Push

SAP announced plans to acquire data lakehouse analytics company Dremio and AI research firm Prior Labs to strengthen its artificial intelligence capabilities, according to HPCwire.

The dual acquisitions position SAP to compete more directly with rivals such as Microsoft, Salesforce and Oracle in the market for AI-powered business software.

Dremio, headquartered in San Francisco, specializes in data lakehouse technology that enables organizations to run analytics directly on cloud data lakes without requiring data movement or copies. The company serves U.S. enterprises seeking to unify their data infrastructure for AI and analytics workloads.

Prior Labs, an AI research firm, brings machine learning research expertise that SAP aims to integrate into its product suite. The acquisition reflects a broader industry trend of enterprise software companies acquiring specialized AI research teams to accelerate development of intelligent features across their platforms.

The moves come as SAP, which provides ERP software to thousands of U.S. and global enterprises, seeks to deliver AI capabilities that can operate across the vast stores of business data its customers generate. Enterprise software vendors have increasingly turned to acquisitions to fill gaps in their AI and data strategies rather than building capabilities from scratch.

Financial terms of the deals were not immediately disclosed in the report.

For U.S. businesses that rely on SAP for enterprise resource planning and core business operations, the acquisitions could eventually translate into more advanced AI-driven analytics and automation features integrated into the SAP ecosystem. The Dremio acquisition in particular addresses an enterprise need for unified data access, which underpins deployment of AI models in business settings.

The enterprise AI market has seen consolidation as major vendors seek to assemble the technology stacks needed to deliver AI capabilities to corporate customers. SAP’s move follows similar acquisition strategies by competitors seeking to combine data infrastructure with AI capabilities.

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