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DOJ Probes ServiceNow’s $2.85B AI Merger with Moveworks

By  |  July 17, 2025

The U.S. Department of Justice has launched a detailed antitrust investigation into ServiceNow Inc.’s proposed $2.85 billion acquisition of artificial intelligence company Moveworks Inc., potentially delaying the deal’s completion and raising questions about its impact on competition in the enterprise software sector.

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    According to Bloomberg, both companies have received a “second request” from the DOJ, signaling that regulators are seeking additional documentation and data before deciding whether to approve the transaction. Such requests are typically rare but can significantly extend the review timeline, sometimes taking over a year to resolve. People familiar with the matter told Bloomberg that the Justice Department began its probe in June, although the investigation has not been made public.

    If federal officials uncover potential antitrust concerns, they may ultimately file a lawsuit to prevent the merger from going through. ServiceNow and the DOJ declined to comment on the matter, while Moveworks did not respond to media inquiries.

    The acquisition, initially announced in March, is intended to boost ServiceNow’s AI capabilities, particularly in human resources and IT service automation. Per Bloomberg, ServiceNow, led by CEO Bill McDermott, has been investing heavily in generative AI tools as it competes with major tech players like Microsoft and Salesforce. The Santa Clara-based firm’s software helps enterprises streamline internal operations and improve employee efficiency.

    Founded in 2016, Moveworks develops AI-powered digital assistants designed to automate and respond to employee support requests. Its platform is used by a range of well-known companies including Unilever, GitHub, and Broadcom. The startup has attracted investments from firms such as Kleiner Perkins and Bain Capital Ventures and was valued at $2.1 billion in a 2021 funding round, according to Bloomberg.

    ServiceNow and Moveworks already share a significant customer base, with many of Moveworks’ deployments built on ServiceNow’s platform. The companies have stated that early integration will center around delivering a self-service AI assistant for workplace support.

    This deal arrives amid heightened scrutiny of AI-related mergers, as regulators closely monitor how consolidation might reshape the competitive landscape in emerging tech sectors. As Bloomberg notes, the rapid rise of AI-first tools has put pressure on legacy software providers to innovate or acquire. The overlap between ServiceNow’s and Moveworks’ offerings — especially in the automation of routine internal tasks — has likely contributed to regulators’ interest in the transaction.

    Source: Bloomberg