ServiceNow Nears $3 Billion Acquisition of AI Firm Moveworks

ServiceNow is reportedly finalising a deal to acquire AI assistant provider Moveworks in what could be its largest acquisition to date, according to a report by Bloomberg. The deal, expected to be announced in the coming days, may value Moveworks at nearly $3 billion.

While discussions are in advanced stages, there remains a possibility of delays or a breakdown in negotiations, sources said. 

Founded in 2016, Moveworks specialises in AI-driven employee assistance tools used by major companies such as Unilever, GitHub, and Broadcom. The company, backed by investors including Kleiner Perkins, Lightspeed Venture Partners, and Bain Capital Ventures, was valued at $2.1 billion in a 2021 funding round.

Led by CEO Bill McDermott, ServiceNow develops software that helps businesses streamline IT and personnel operations. The Santa Clara-based firm has been increasingly integrating generative AI into its products. 

In January, ServiceNow and Google Cloud expanded their partnership to integrate AI-driven enterprise technology. The ServiceNow Platform will launch on Google Cloud Marketplace, allowing businesses to connect their workflow solutions with Google Cloud’s AI, data analytics, and productivity tools.

Speaking with AIM earlier, ServiceNow India MD Sumeet Mathur explained why everyone wants to partner with ServiceNow instead of competing with them. For context, most Indian IT companies, the big techs of the world, and even companies like Databricks and Snowflake have partnered with the company in recent years.

ServiceNow has been actively working in AI for over a decade, making the transition to GenAI an incremental step rather than a leap. Three years ago, ServiceNow acquired Element AI, which laid the foundation for its advancements in LLMs. “Our GenAI offerings are persona-focused,” Mathur explained, emphasising tailored solutions for employees, agents, and developers.