ServiceNow Buys AI Startup Moveworks for $2.9B

Ken Metral

10 Mar 2025 — 2 min read

Credit: ServiceNow, Inc./Moveworks, Inc.

In a bold move to deepen its AI capabilities, ServiceNow announced Monday it will acquire agentic AI firm Moveworks for $2.85 billion in a cash-and-stock deal — the company’s largest acquisition to date. The acquisition reflects the growing pressure on enterprise software companies to evolve rapidly as generative AI continues to reshape the IT landscape.

A Strategic Bet on AI

ServiceNow, best known for its workflow automation and IT service management software, is betting big on Moveworks' advanced AI assistant technology to accelerate its AI-first platform vision. With more companies seeking smarter, faster solutions to support employees and optimize operations, the acquisition gives ServiceNow a competitive edge as it integrates Moveworks’ conversational AI into its offerings.

Moveworks' AI tools help enterprises resolve employee IT and HR issues through natural language interfaces. Its chatbot technology — capable of integrating with platforms like ServiceNow, Salesforce’s Slack, and Microsoft’s SharePoint — serves major customers like Broadcom, Palo Alto Networks, and Pinterest.

No Layoffs, Full Integration

More than 500 Moveworks employees will join ServiceNow as part of the acquisition. ServiceNow CFO Gina Mastantuono emphasized that there are no plans for layoffs related to the deal. The company expects a smooth integration and no significant regulatory hurdles.

Why This Deal Matters

This acquisition isn’t just about scaling up — it’s about reinforcing ServiceNow’s place in a rapidly changing market. Moveworks raised $200 million in its 2021 Series C, reaching a $2.1 billion valuation. That round was led by Tiger Global and Alkeon Capital, with participation from top-tier firms like Bain Capital, ICONIQ Growth, Lightspeed Venture Partners, Sapphire Ventures, and Kleiner Perkins.

Now, with ServiceNow’s own AI assistant ("Now Assist") already competing in the space, the deal allows the company to consolidate talent and technology while offering a more comprehensive AI-driven experience to enterprise customers.

Market Reaction and Outlook

Despite the strategic alignment, ServiceNow shares dropped 7% following the announcement — likely due to concerns over valuation, integration, or broader market sentiment. However, the deal is expected to close in the second half of 2025, pending standard approvals.

What's Next

ServiceNow’s acquisition of Moveworks sends a clear message: AI is no longer a feature — it’s the future of enterprise software. As organizations look to scale their use of generative AI, ServiceNow is positioning itself at the center of that transformation.

With this deal, the company isn’t just acquiring a tool — it’s acquiring momentum in the race to define the next era of work.

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