x.com/SebJohnsonUK/status/2051264559080526018
1 correction found
Today SAP has announced that it is acquiring the company for $1bn+.
SAP did announce an agreement to acquire Prior Labs, but it did not announce a $1bn+ purchase price. Official statements say the deal terms were not disclosed, and the €1bn+ figure refers to SAP’s planned investment over the next four years after the acquisition.
Full reasoning
The official announcement does not say SAP is buying Prior Labs for $1bn+.
On May 4, 2026, SAP said it had entered into a definitive agreement to purchase Prior Labs, but also stated plainly that "Terms of the deal were not disclosed." In the same paragraph, SAP said it was "committing to invest more than €1 billion over the next four years" to scale Prior Labs as an AI lab. That means the public €1bn+ figure is a future investment commitment, not a disclosed acquisition price.
Prior Labs’ own announcement says the same thing: the company signed an agreement to be acquired by SAP, "The terms are not disclosed", and "SAP will invest more than 1 billion EUR over the next four years."
So the post incorrectly turns an undisclosed deal plus a future investment commitment into a confirmed $1bn+ acquisition price.
2 sources
- SAP to Acquire Prior Labs to Establish a Globally Leading Frontier AI Lab in Europe
Prior Labs will continue to operate as an independent entity, with SAP committing to invest more than €1 billion over the next four years... Terms of the deal were not disclosed.
- The Next Chapter for Prior Labs
Today we're announcing the next chapter. Prior Labs signed a definitive agreement to be acquired by SAP... The terms are not disclosed... SAP will invest more than 1 billion EUR over the next four years.