ServiceNow Buys AI Startup Moveworks for $2.85B: What It Means for Markets

On Monday, software maker ServiceNow announced its largest acquisition to date, acquiring AI startup Moveworks for $2.85 billion in a combined cash-and-stock transaction. The deal is expected to close in the latter half of 2025.

“With the acquisition of Moveworks, ServiceNow will take another giant leap forward in agentic AI‑powered business transformation,” said company president, chief operating officer, and chief product officer Amit Zavery. “Moveworks’ talented team and elegant AI‑first experience, combined with ServiceNow’s powerful AI‑driven workflow automation, will supercharge enterprise‑wide AI adoption and deliver game‑changing outcomes for employees and their customers.”

Why ServiceNow acquired AI startup Moveworks

Moveworks specializes in front-end agentic AI tools designed to enhance workplace efficiency, primarily through conversational AI assistants that automate employee support. The startup serves major corporations, including Spotify, Unilever, and Toyota and has expanded rapidly, reaching 5 million employee users in 18 months.

ServiceNow provides automation and workflow solutions to more than 1,000 enterprise clients. It is positioning itself to compete more aggressively with Salesforce and Microsoft, both of which have made significant investments in artificial intelligence. By acquiring Moveworks, ServiceNow aims to accelerate its AI adoption and development.

Once the deal is finalized, more than 500 employees from Moveworks will join ServiceNow, significantly increasing the latter’s AI team. ServiceNow Chief Financial Officer Gina Mastantuono told Reuters that no layoffs are planned and the company does not anticipate any regulatory roadblocks delaying the acquisition.

Deal increases Moveworks valuation

As a privately held company, Movework’s stock is not publicly traded. However, the ServiceNow deal does represent a significant increase in Moveworks’s valuation based on past data. In 2021, Moveworks closed $200 million in Series C funding, which increased its valuation to $2.1 billion at the time. The round was led by Tiger Global and Alkeon Capital, with additional backing from Lightspeed Venture Partners, Sapphire Ventures, Bain Capital, ICONIQ Growth and Kleiner Perkins.

The ServiceNow deal represents yet another increase in Movework’s valuation, showing how much tech companies are willing to invest in AI companies. ServiceNow is publicly traded, and shares were down 7% at the time of the announcement. J.P. Morgan Securities LLC is ServiceNow’s lead financial adviser for the transaction.