SAP buys Dremio, Prior Labs for AI data push (finance.yahoo.com)

SAP is making significant strides in enhancing its AI capabilities by acquiring Dremio, a data lakehouse platform, and Prior Labs, an AI model developer. The Dremio acquisition aims to merge SAP’s data ecosystem with external data sources, allowing for more efficient real-time AI workload processing. This move is part of SAP’s broader strategy to build a robust data foundation that addresses persistent data infrastructure challenges, which have been a bottleneck for enterprise AI initiatives, leading to substantial wasted spending on AI. Additionally, the acquisition of Prior Labs, known for its tabular foundation models (TFMs) specifically designed for structured data, reflects SAP's commitment to diversifying its AI offerings. These models can accurately predict business outcomes related to data such as payment delays and supplier risks, providing a tailored solution that contrasts with the limitations of large language models (LLMs) in handling structured information. SAP's investments underscore the increasing recognition within the AI community that effective data management is critical to scaling AI deployments, and they are set to unveil more portfolio enhancements at the upcoming SAP Sapphire 2026 event.