ServiceNow and NVIDIA enhance AI with new reasoning model

LAS VEGAS - ServiceNow (NOW), a prominent player in the software industry with a market capitalization of $200.89 billion, and NVIDIA have announced a collaboration to introduce a high-performance reasoning model, the Apriel Nemotron 15B, designed to improve AI agents’ decision-making and workflow management in enterprises. According to InvestingPro data, ServiceNow maintains impressive gross profit margins of 78.92% and has achieved robust revenue growth of 21% over the last twelve months. Revealed at ServiceNow’s Knowledge 2025 event, this model aims to lower latency and inference costs while accelerating AI performance.

The Apriel Nemotron 15B is developed in partnership with NVIDIA, using NVIDIA NeMo and ServiceNow-provided data, and is trained on NVIDIA DGX Cloud hosted by Amazon Web Services (AWS). It is intended to offer advanced reasoning capabilities in a more compact and efficient size, which could enhance its operation on NVIDIA GPU infrastructure. Early benchmarks indicate promising performance for its size category, suggesting potential for scaling AI workflows in businesses.

In addition to the reasoning model, ServiceNow and NVIDIA plan to integrate NVIDIA NeMo microservices into the ServiceNow Workflow Data Fabric. This integration is expected to create a closed-loop data flywheel process, which refines and optimizes reasoning models continually, improving accuracy and personalization of AI agents.

Jon Sigler, EVP of Platform and AI at ServiceNow, highlighted that the Apriel Nemotron 15B model is part of a broader innovation effort. The data flywheel, powered by Workflow Data Fabric and NVIDIA NeMo, will enable a cycle of learning and improvement, resulting in AI agents that are more contextually aware and personalized.

Kari Briski, Vice President of Generative AI Software for Enterprise at NVIDIA, emphasized the shared goal of enhancing employee productivity through AI tools. The integration of NVIDIA’s microservices with ServiceNow’s data fabric aims to provide a solid foundation for intelligent digital agents.

The Apriel Nemotron 15B model and the data flywheel integration are designed to empower AI agents to handle complex tasks, such as resolving billing issues, by leveraging continuous data and process feedback to improve performance over time. ServiceNow’s strong financial health, rated as GREAT by InvestingPro, positions it well to execute on this strategic initiative. For detailed analysis of ServiceNow’s valuation and growth prospects, investors can access comprehensive Pro Research Reports covering 1,400+ top stocks on InvestingPro.

ServiceNow and NVIDIA’s ongoing collaboration is focused on ensuring that large language models (LLMs) and the experiences they enable are not only intelligent but also measurable, secure, and ready for deployment in real-world settings. The Apriel Nemotron 15B model is expected to be available in Q2 2025. Based on current trading levels and InvestingPro’s Fair Value analysis, ServiceNow appears to be trading near its Fair Value, with analysts maintaining a strong buy consensus and 14+ additional ProTips available for subscribers.

This latest development builds on the companies’ partnership to drive enterprise workflows with greater speed, precision, and cost-efficiency. The information in this article is based on a press release statement.

In other recent news, ServiceNow has launched a new AI platform aimed at enterprise-wide orchestration, integrating AI, data, and workflows. The platform is already being adopted by major companies like Adobe, Aptiv, and Visa to improve business outcomes. Analysts have also been active, with Stifel raising its price target for ServiceNow to $1,050 while maintaining a Buy rating, highlighting the company’s potential for margin growth through AI-driven efficiencies. TD Cowen reiterated its Buy rating and $1,100 price target, emphasizing ServiceNow’s leadership in monetizing General AI within the SaaS sector. RBC Capital increased its price target to $1,100, citing ServiceNow’s strong market position in agentic AI and successful monetization of GenAI technologies. BMO Capital maintained a $1,025 target, reinforcing its positive outlook based on ServiceNow’s strategic focus on expanding AI capabilities. These developments indicate a strong focus on AI innovation and strategic growth initiatives by ServiceNow.

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