OpenAI expands ServiceNow partnership as ServiceNow stock drops 19%

The expanded deal works in both directions. OpenAI agents will run inside ServiceNow workflows, and ServiceNow becomes reachable from ChatGPT and Codex.

The market reaction tells the story. ServiceNow shares fell 19% after earnings, as investors fear agents will hollow out per-seat SaaS pricing. For incumbent SaaS vendors, partnering with OpenAI is defensive positioning.

OpenAI's own essay this week, 'The future of the firm,' imagines AI working beneath, beside and between workers. That framing makes those investor fears feel concrete.

What to watch: whether other SaaS incumbents sign similar deals, and how pricing models change in response.