Aiming to speed up its artificial intelligence push, software maker ServiceNow (NOW) is in talks to acquire AI startup Moveworks for $3 billion, said a report. ServiceNow stock dipped amid the news.
The Moveworks purchase would mark ServiceNow's biggest acquisition. Moveworks' platform features an generative AI assistant for employee support.
In September, Mountain View, California-based Moveworks said it had topped $100 million in annual recurring revenue.
Like most software makers, Santa Clara, Calif.-based ServiceNow is racing to integrate artificial intelligence into its products.
↑ X NOW PLAYING What This Software Stock's Earnings Can Tell Us About The Health Of The AI MarketplaceHaving struggled to generate new revenue from "copilots," software companies are now turning to autonomous, goal-driven AI agents. One big issue for software companies is how fast customers ramp up pilot programs to commercial deployment.
On the stock market today, ServiceNow stock dipped 1.5% to near 838. ServiceNow stock has shed nearly 20% in 2025.
Under Chairman and Chief Executive Bill McDermott, ServiceNow has also acquired Element AI in 2020, Hitch Works in 2022 and G2K in 2023.
McDermott has taken ServiceNow from its roots in information technology services management into new departments such as human resources, finance, legal and procurement.
In generative AI, analysts expect ServiceNow to compete with Salesforce (CRM) and others that can leverage large installed customer bases.
ServiceNow stock has tumbled below all its key moving averages, hitting a six-month low last week.
NOW stock holds an IBD Composite Rating of 84 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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