SAP has struck a deal to acquire Dremio, a data lakehouse specialist, in a move aimed at making its enterprise software stack more useful for agentic AI. The companies did not disclose financial terms, and the transaction still needs regulatory approval, with completion expected in the third quarter of 2026, according to statements from both sides.
The acquisition gives SAP a platform designed to help companies combine information held inside SAP systems with data stored elsewh...
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ere, a task that has long been a stumbling block for large organisations trying to build AI applications. SAP said the logic behind the deal is that many AI efforts falter not because the models are weak, but because underlying business data is scattered across incompatible systems and difficult to govern.
Dremio brings an open lakehouse platform built on Apache Iceberg, which the company says can support analytics and AI workloads without forcing customers to move data out of their own environment. That matters because SAP already works with major data platform rivals such as Snowflake and Databricks through partnerships, but Dremio’s pitch is different: it is designed to query and organise data where it already resides, reducing duplication and integration overhead.
According to Dremio’s announcement, the combination is intended to create a more unified and governed data layer for SAP’s Business Data Cloud and related products, including SAP HANA Cloud. The company said the aim is to let AI agents reason across both SAP and non-SAP information in real time, while preserving the context needed for business decisions.
Industry observers cited by TechTarget said the Dremio acquisition is part of a broader SAP push to strengthen its AI development capabilities, alongside its recently announced deal for Prior Labs. Taken together, the purchases suggest SAP is trying to deepen the data foundation under its AI strategy rather than simply adding another model layer on top.
Source: Noah Wire Services
