Prior Labs Acquisition, Valuation, Funding & Investors
Prior Labs was acquired by SAP for $1.2B in May 2026.
Cumulative funding Prior Labs raised
$9M
across 1 funding round
Key investors in Prior Labs
Balderton Capital
About Prior Labs
Prior Labs is a San Francisco-based AI startup developing foundation models specialized in parsing and understanding spreadsheets and databases. Its tools enable natural language queries, data extraction, and analysis for business intelligence applications.
Founded
2024
HQ
BerlinWebsite
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Valuation
$1.2B (acquired May 2026)
Prior Labs Acquisition
Prior Labs was acquired by SAP for $1.2B on 3 May 2026.
Before the acquisition Prior Labs had raised $9M across 1 funding round.
SAP has agreed to acquire Prior Labs, a German artificial intelligence startup specializing in tabular foundation models for structured data. The acquisition price has not been disclosed, though sources indicate the deal was structured as almost entirely cash, with well over half a billion dollars paid upfront to the founders—Frank Hutter, Noah Hollmann, and Sauraj Gambhir. SAP has committed to investing more than €1 billion over the next four years to scale Prior Labs into a globally leading frontier AI research lab. The transaction is expected to close in Q2 or Q3 of 2026, subject to regulatory approvals. SAP's acquisition of Prior Labs reflects the enterprise software giant's strategic focus on AI capabilities designed specifically for the structured data—tables and databases—that underpin enterprise operations. The investment positions Europe as a center for frontier AI research and development, particularly in the domain of tabular foundation models, which represent a distinct category of AI technology optimized for business data rather than unstructured content. Prior Labs will continue to operate as an independent entity within SAP's portfolio. Prior Labs was founded in 2024 by machine learning researchers Frank Hutter, Noah Hollmann, and Sauraj Gambhir. The company gained recognition as the pioneer of TabPFN, a tabular foundation model technology. Prior to the SAP acquisition, Prior Labs had raised only one funding round: a €9 million pre-seed round in February 2025 led by Balderton Capital, with participation from XTX Ventures, the Hector Foundation, Atlantic Labs, and Galion.exe. The company's rapid progression from pre-seed funding to acquisition by a major enterprise software vendor within eighteen months underscores the strategic importance of tabular AI capabilities in the current market.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 3 May 2026 | Strategic M&A | $1.2B |
Sources: news.sap.com, pathfounders.com
Prior Labs Funding History
Prior Labs has raised a total of $9M across 1 funding round.
Prior Labs funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Feb 2025 | Pre-seed | Balderton Capital (lead) | $9M | Prior Labs is a Freiburg-based AI startup founded in late 2024 by Professor Frank Hutter, Noah Hollmann, and Sauraj Gambhir, with advisors Bernhard Schölkopf and Alex Diehl. The company develops foundation models for tabular data, including TabPFN, to enable fast and accurate machine learning predictions from spreadsheets and databases without training custom models. This technology aims to transform how businesses analyze tabular data, which underpins critical decisions in science and industry. Prior Labs raised €9 million in a pre-seed funding round led by Balderton Capital, with participation from XTX Ventures, Hector Foundation, Atlantic Labs, Galion.exe, and prominent AI angel investors such as Peter Sarlin, Thomas Wolf, and others. The round, announced in early 2025, will fund product development, team expansion, and broader market adoption of their API for business data workflows. Balderton Capital partner James Wise highlighted the breakthrough's potential to bring machine learning superpowers to tabular data analysis. |
Who has invested in Prior Labs?
1 investor has backed Prior Labs across its funding rounds, including Balderton Capital.
Lead investors include Balderton Capital.
Prior Labs Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
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Start Free TrialPrior Labs Competitors
Prior Labs competitors include listed companies like Fractal Analytics and ZoomInfo, and private ones like Arcee.ai, Seekr, Invoca and Aibee.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
 San Francisco, CA | Private | - | - | $1.1B | - | |
| Reston, VA | Private | $18M | - | $1.1B | 62.1x | |
| Santa Barbara, CA | Private | $100M | - | $1.1B | 11.0x | |
 India | Publicly listed | $344M | $50M | $1.3B | 3.4x | |
 Beijing | Private | - | - | $1B | - | |
| United States | Publicly listed | $1.2B | $326M | $1.2B | 2.1x |
Prior Labs Public Comps
Prior Labs is no longer listed, but its public comps include ZoomInfo, Braiin, iFLYHealth, Appier Group, Rackspace, Fractal Analytics, BigBear.ai, Rezolve AI, Beijing CTJ Info Tech and PCITECH.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $1.2B | $326M | 2.0x | 2.1x | 7.8x | 5.1x | |||
| $73M | ($15M) | 15.8x | 13.0x | (76.1x) | 89.6x | |||
| $136M | ($7M) | 7.7x | 6.2x | (150.8x) | (144172.5x) | |||
| $281M | $44M | 3.4x | 2.9x | 21.6x | 15.7x | |||
| $2.7B | $244M | 1.5x | 1.6x | 17.1x | 15.0x | |||
| $344M | $50M | 3.7x | 3.4x | 25.8x | 21.0x | |||
| $128M | ($295M) | 8.3x | 7.6x | (3.6x) | (27.8x) | |||
| $47M | ($109M) | 23.3x | 4.0x | (10.0x) | (19.3x) | |||
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Common questions about Prior Labs
| When was Prior Labs founded? | Prior Labs was founded in 2024. |
| Where is Prior Labs headquartered? | Prior Labs is headquartered in Berlin, Germany. |
| Is Prior Labs publicly listed? | No, Prior Labs was acquired by SAP in May 2026. |
| Who acquired Prior Labs? | Prior Labs was acquired by SAP in May 2026. |
| How much was Prior Labs acquired for? | Prior Labs was acquired for $1.2B in May 2026. |
| How much funding has Prior Labs raised? | Prior Labs has raised $9M across 1 funding round. |
| What was Prior Labs' last funding round? | Prior Labs' last funding round was a $9M pre-seed round in February 2025, led by Balderton Capital. |
| Who are Prior Labs' investors? | Prior Labs' investors include Balderton Capital. |
| Which companies are comparable to Prior Labs? | Companies comparable to Prior Labs include Arcee.ai, Seekr, Invoca, Fractal Analytics, Aibee and ZoomInfo. |
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