Service Now just signed a three-year deal with Open AI to embed GPT 5.2 directly into its enterprise workfield platform. Now this agreement brings Open AI technical advisors and ServiceNow engineers together to build custom AI solutions that enterprises can deploy without bespoke development. ServiceNow powers more than 80 billion workflows every year across different platforms, IT, customer service and operations.
And this new partnership between these two gives those workflows direct access to frontier AI capabilities from ChatGPT and open AI, including real time speech to speech voice agents. So when you're on the phone and you're talking to an agent from a ServiceNow company, you're probably talking to a person. Nope, that's not right. You're actually talking to an AI now. That's what's going to be
happening for service now. The company that controls the enterprise workflow layer now has the keys to one of the most advanced AI systems on this planet. And what does that mean for every other software company fighting for the same customers? Open AI is computer use model will also become part of the ServiceNow platform, allowing AI agents to perform IT tasks like restarting devices or accessing data locked in legacy mainframe systems.
Today, we're going to cover the competitive dynamics driving this whole deal. It's $12 billion of acquisitions that ServiceNow did this year. And why this race to become the AI control tower for business just got a little bit spicy. And we're going to do that right If this very short break. ServiceNow is betting big on becoming the central hub where
AI meets enterprise. The company has spent more than $12 billion on acquisitions in 2025, including Moveworks for 2.85 billion, cybersecurity startup Vasa for roughly a billion and Armas for 7.75 billion in its largest purchase ever. 7 acquisitions in a year makes a sharp departure from a company that built its reputation on organic growth and the mantra of one platform, 1 architecture, one data model.
Now this Open AI partnership accelerates that strategy by adding frontier AI capabilities the company could not build internally on the same timeline. ServiceNow now processes more than 80 billion workflows annually across the Fortune 500, and the company wants every one of those workflows running on its AI infrastructure. Brad Lightcap, who's Open AI chief operating officer, told The Wall Street Journal that enterprises want open AI intelligence applied directly
into ServiceNow workflows. Customers increasingly seek what Lightcap calls agentic and multimodal experiences that behave like AIT mates rather than just chat bots answering questions for you. And the deal includes a revenue commitment from Service Now to Open AI, though neither company disclosed the actual financial terms. Open AI has been pursuing similar enterprise software partnerships, including deals with Intuit and $100 million commitment from Databricks last September.
This is Open AI strategy for turning research breakthroughs into recurring enterprise revenue. Find the platforms where businesses already run their operations and then embed frontier models directly into those systems. ServiceNow gives Open AI access to 85% of the Fortune 500 through this single integration. Now, the technical integration goes beyond just API access. That's pretty simple. ServiceNow plans to build speech to speech AI agents for customer service using Open AI Voice
Focus models. These agents will listen, reason, and respond in natural language without converting speech to text first. A user could speak in their preferred language and receive an instant response from an AI agent that opens a case, triggers an approval, and orchestrates next steps without translation delays. That capability eliminates the latency and context loss that plague current automated customer service systems.
Current voice automation typically converts speech to text process That text through an AI model, generates a text response, and then it converts it back to speech. Each conversation step introduces delays and loses nuances, and speech to speech processing cuts out the middle steps entirely and preserves the natural flow of the conversation and service. Now this is huge. They'll also integrate open a is computer use model to unlock what the company calls a new class of IT automation.
IT professionals, watch out, A is actually coming for you. These agents can interact with systems by navigating interfaces the way a human would, turning unstructured documents into actionable data and automating interactions with legacy systems, including mainframes. The practical application here is quite significant. Many large enterprises still run critical operations on 30 year old hardware and that modern automation tools can't touch them. Right now they're they can't even do it.
Banks, insurance companies, they all run on it and governments too. They depend on COBOL systems. The process trillions of dollars in transactions annually. An AI agent that can navigate those interfaces opens a massive surface area for automation that was previously locked away behind obsolete technology stack. Now, Servicenow's president Ahmed Zavery and chief operating officer framed this partnership around speed and scale.
Companies shifting from AI experimentation to full development need multiple AI capabilities working together to deliver faster outcomes. ServiceNow already offers customers access to various AI models, but the open AI integration makes GPT 5.2 a preferred intelligence capability embedded natively in the platform. That preferential treatment Signal Service now is picking sides in the AI model wars rather than remaining model
agnostic. I've been digging through all of the analytics of the show and noticed that around 37 of you, that's 37%, sorry, are following the channel. And for you, I'm forever grateful. I thank you so much for being part of this community. The other 63% of you haven't hit the follower subscribe button. I've been an independent journalist covering Elon Musk, SpaceX tech, AI for the last six years, and I'm going to continue
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As you can tell, I had some audio upgrades at the beginning of the year and we're not going back because of your support. So thank you so much for all that you do. Now let's get back into some of this. Salesforce agents open AI. It's all wild right now. It's the Wild West of AI now. There's competitive pressure right now, and it runs real deep. Salesforce launched Agentforce 2 Point O in December, with CEO Marc Benioff declaring that the AI revolution is already here.
And Salesforce reported 119 percent agent growth in the first half of 2025 and expanded partnerships with Open AI, Anthropic, Google, and AWS to solidify its ecosystem approach. Work Day announced its Illuminate AI agents for HR, case management, performance reviews, and financial close processes. SAP has rolled out more than 40 jewel agents embedded across its enterprise software suite and plans to have over 400 AI scenarios by the end of 2025.
And Oracle claims its Fusion Applications suite delivers end to end AI within existing workflows at no additional cost to customers. Every major enterprise software company is racing to prove it can orchestrate AI across business workflows in the vendor that wins controls the massive revenue stream for all of the enterprise. And according to Gartner, worldwide spending on information security alone will reach $240 billion in 2026, with AI adoption driving much of that growth.
Service Now has acquisition strategy over the past year reveals its thinking move works deal for 2.85 billion brought AI powered enterprise search and roughly 500 AI specialist out of the team. Moverworks provides the engagement layer where employees interact with AI through natural conversations rather than just old school fly out menus and drop down menus. Visa added identity security and access governance, which becomes critical when you deploy
autonomous AI agents. They can take actions across enterprise systems. An AI agent that can restart servers, access financial data, or modify customer records needs strict identity controls to prevent unauthorized actions. And Armis provides security for cyber exposure management across IT operational technology, IoT devices, and medical equipment.
Armis recently topped 340 million in animal recurring revenue with 50% year over year growth and serves over 35% of the Fortune 100. Each acquisition fills a gap that might otherwise give enterprise buyers a reason to look elsewhere, and ServiceNow wants to be the single answer to every question about enterprise AI management. ServiceNow stock rose 2% in pre market trading when news of the
Open AI deal broke. Investors has previously punished the stock over concerns about the company's aggressive acquisition pace, with shares falling to the lowest level since April 2025 after the Armas announcement. Chief Financial Officer Gina Mastantuno sought to reassure investors that the spending would slow after the Armistile closes. And the Open AI partnership offers a different idea altogether. Strategic AI integration. Rather than just swooping in and
buying all those companies. Whether ServiceNow can integrate 7 major acquisitions in a year while maintaining platform coherence remains an open question. Usually doesn't happen that way, Usually takes a little bit of time, and we're going to see how they do integrating this all with their own complex architecture.