ServiceNow to acquire AI firm Moveworks in $2.85 billion deal

The company's largest acquisition strengthens its AI capabilities as enterprise demand for AI-driven IT solutions grows

Image by PublicDomainPictures from Pixabay (with added elements courtesy of Canva)

Cloud computing giant ServiceNow is acquiring AI firm Moveworks for $2.85 billion in cash and stock, its largest acquisition yet, as enterprises ramp up investment in AI-driven IT solutions.

Here are some key points:

• Moveworks, known for its AI-powered chatbots used by companies like Broadcom and Pinterest, will integrate its 500+ employees into ServiceNow without immediate layoffs.

• The deal, expected to close in late 2025, strengthens ServiceNow's AI capabilities and competition in the enterprise software market.

• Despite the acquisition, ServiceNow's stock dropped 7% yesterday.

• Moveworks previously raised $315 million in funding, with a valuation of $2.1 billion.

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