SAP has spent over $1.16 billion to acquire the German startup Prior Labs just 18 months after its founding. This is one of the largest deals in the enterprise AI sector this week, as the venture market has seen record investments in artificial intelligence.

From May 2 to May 8, 2026, the venture market experienced a surge in activity: startups raised over $8 billion in funding rounds, including mega-rounds and strategic acquisitions. SAP's acquisition of the Freiburg-based startup Prior Labs became a symbol of how large corporations are competing for leadership in AI. The company has committed to investing 1 billion euros over four years to create an open enterprise AI lab.

SAP and Prior Labs: Strategy for Capturing the Enterprise AI Market

German software giant SAP announced on May 5 the acquisition of Prior Labs, a startup specializing in AI models for working with tabular data in a corporate environment. The deal was worth over $1.16 billion, making it one of the largest in the history of German AI startups. Notably, Prior Labs was founded just 18 months ago but has already attracted the attention of one of the world leaders in enterprise software.

SAP didn't just buy the company—the company has committed to investing 1 billion euros over four years to create an open enterprise AI lab. This means that Prior Labs will become a center for developing AI solutions for the corporate sector, rather than just being integrated into SAP's existing products. This approach shows that large corporations are willing to pay a premium for innovative technologies and maintain the independence of research teams.

For context: Prior Labs developed specialized AI models for analyzing tabular data—one of the most complex tasks in machine learning. Tabular data makes up a large part of corporate databases, and processing it requires special approaches different from working with text or images. This makes Prior Labs' technology critical for enterprises dealing with large volumes of structured data.

Wave of Mega-Rounds: Sierra, Moonshot AI, and Other Leaders

The week from May 2 to May 8 became a record for the number of large funding rounds in the AI sector. The enterprise AI agent platform Sierra raised $950 million in a Series E round at a valuation of $15.8 billion. Founded by Brett Taylor and Clay Bavoure, the company already serves 40% of Fortune 50 companies with an annual recurring revenue (ARR) of $150 million in its first eight quarters of operation.

Beijing-based startup Moonshot AI received $2 billion in a strategic round at a valuation of $20 billion, becoming one of the most expensive AI startups outside the United States. This indicates that investors are actively diversifying portfolios beyond Silicon Valley.

Other significant rounds included Hightouch ($150 million, Series D at a valuation of $2.75 billion), Panthalassa ($140 million, Series B for climate technology), Avoca ($125 million, Series B for AI in services), and Reserv ($125 million, Series C for insurance claims automation). A total of over 30 funding rounds worth more than $8 billion were announced over the week, demonstrating unprecedented interest from venture investors in AI technologies.

Corporate Acquisitions Reshaping the AI Landscape

In addition to SAP, this week saw several other major acquisitions that show how traditional corporations are integrating AI startups into their ecosystems. IonQ announced the acquisition of SkyWater Technology—the largest independent American semiconductor foundry—for $1.8 billion. The deal was approved by shareholders on May 8, and its closing is expected in the second or third quarter of 2026.

This acquisition is strategically important for the development of quantum computing in the United States. SkyWater Technology has unique capabilities for producing specialized chips needed for quantum systems. The merger with IonQ will allow the company to access advanced quantum computing technologies while simultaneously providing manufacturing capabilities for their commercialization.

In addition, Hubbell acquired NSI Industries for $3 billion in an all-cash deal from Sentinel Capital Partners. Although this acquisition is not directly related to AI, it demonstrates the overall trend of consolidation in the technology sector. All these deals together show that large corporations are willing to pay premium prices for access to innovative technologies and talent.

New Unicorns and Startups on the Path to Scaling

Among the new achievements in the venture market is Corgi Insurance—an AI-native full-cycle insurance operator for startups. The company raised $160 million in a Series B round at a valuation of $1.3 billion, becoming the latest Y Combinator unicorn just four months after Series A. The company was founded by Emily Yuan, a former PM at OpenAI, and Nico Laqua.

This achievement shows that the market is ready to fund companies that are rethinking traditional industries with the help of AI. The insurance sector has historically been conservative and slow to adapt to new technologies, but Corgi Insurance demonstrates that AI can revolutionize even such established industries.

Other notable startups include Braintrust ($80 million, Series B at a valuation of $800 million) for monitoring and evaluating enterprise AI, JuliaHub ($65 million, Series B) for creating digital twins of complex systems, and Tessera Labs ($60 million, Series B) for automating the modernization of corporate ERP systems. All these companies are solving real problems in the corporate sector, where the demand for AI solutions is growing exponentially.

Climate Technologies and Infrastructure Receive Investor Attention

In addition to AI, climate technologies and infrastructure solutions received significant attention from investors this week. Portland-based climate startup Panthalassa raised $140 million in a Series B round. The company is developing wave energy combined with on-board AI computing on floating ocean platforms that transmit data via LEO satellites. The company's total funding has reached $210 million.

Vancouver-based electric vehicle battery recycling startup Moment Energy raised $40 million in a Series B round. The company converts batteries removed from leased electric vehicles into grid-scale energy storage and is building a gigafactory of batteries in Texas. This solution is critical for the development of renewable energy infrastructure.

Berlin-based remote sensing startup LiveEO raised $30 million in a Series A round for monitoring critical infrastructure through satellite imagery for utilities, pipelines, and railways. These investments show that venture capital is increasingly focusing on solving global problems such as climate change and infrastructure sustainability.

Что это значит для Казахстана

For Kazakhstan and Central Asia, these trends are of direct relevance. The region is actively developing the digital economy, and investments in AI technologies are becoming critical for competitiveness. Kazakh companies operating in fintech, logistics, and energy can use solutions developed by startups like Sierra, Hightouch, and Tessera Labs. For example, companies like Alashed IT, specializing in IT outsourcing, can integrate these AI solutions for their clients in the region. Additionally, climate technologies from Panthalassa and Moment Energy can be adapted for the Kazakh market, where the development of renewable energy is a government priority. According to the Kazakhstan Agency for Protection and Development of Competition, investments in digital technologies in the country grew by 35% in 2025, and this trend is expected to continue in 2026.

SAP is investing $1.16 billion in the acquisition of Prior Labs and has committed to investing an additional 1 billion euros over four years to create an open enterprise AI lab.

The week from May 2 to May 8, 2026, confirmed that AI remains the main driver of venture funding, with over $8 billion raised in rounds and acquisitions. Large corporations like SAP and IonQ are actively acquiring innovative startups to strengthen their market positions. At the same time, there is growing interest in climate technologies and infrastructure solutions, reflecting a global shift in investor priorities.

Часто задаваемые вопросы

How much did SAP spend on acquiring Prior Labs?

SAP spent over $1.16 billion to acquire Prior Labs and has committed to investing an additional 1 billion euros over four years to create an open enterprise AI lab. This is one of the largest deals in the history of German AI startups, especially considering that Prior Labs was founded just 18 months ago.

What other major acquisitions happened this week?

IonQ acquired SkyWater Technology for $1.8 billion, and Hubbell acquired NSI Industries for $3 billion. In addition, there were dozens of funding rounds, including a Series E for Sierra ($950 million at a valuation of $15.8 billion) and a strategic round for Moonshot AI ($2 billion at a valuation of $20 billion).

What is the total amount of venture funding for the week?

Over 30 funding rounds worth more than $8 billion were announced for the week from May 2 to May 8. This includes both mega-rounds for mature companies and Series A and Series B rounds for younger startups working in AI, climate technologies, and infrastructure.

Why was Prior Labs acquired so quickly after its founding?

Prior Labs developed specialized AI models for analyzing tabular data—one of the most complex tasks in machine learning. Tabular data makes up a large part of corporate databases, making the technology critical for enterprises. SAP was willing to pay a premium for access to this innovative technology and talent.

How do these investments affect the Central Asian market?

Kazakhstan and Central Asian companies can use these AI solutions to develop their businesses. Companies like Alashed IT can integrate these technologies for their clients. Additionally, climate technologies can be adapted for the region, where the development of renewable energy is a government priority.

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