SAP to buy Prior Labs and limit which AI agents can use its software

In short: SAP plans to acquire German AI startup Prior Labs, invest €1 billion over four years, and only allow certain approved AI agents to connect to SAP software.

What happened

SAP announced it intends to acquire Prior Labs, a German AI startup founded about 18 months ago. SAP said it will invest €1 billion, about $1.16 billion, into the business over the next four years, pending regulatory approval.

SAP says the goal is to build an AI research lab in Europe that focuses on “structured data,” meaning the rows and columns in business databases and spreadsheets. This is the kind of data SAP software is full of, like finance records, payroll, purchasing, and HR information.

The deal also comes with stricter rules about “AI agents.” An AI agent is software that can take actions for you, like a digital assistant that not only answers questions but can also click buttons and move data between tools (like an assistant with hands, not just a voice). SAP’s published policy says AI agents are not allowed to access SAP products through its API (a software doorway) unless SAP has approved the agent’s design.

According to TechCrunch, approved options include SAP’s own Joule Agents, which are still in beta, and Nvidia’s NemoClaw, which is built on Nvidia’s agent management tools.

Why it matters

Many large companies run core operations on SAP, so these choices can affect what kinds of AI helpers businesses can safely use with their most sensitive data. It is similar to a bank deciding which third-party apps are allowed to connect to your account, and which ones are blocked.

Source: TechCrunch AI