IBM is preparing to acquire Confluent in an 11 billion dollar deal that aims to strengthen its capabilities in cloud computing, real time data streaming and artificial intelligence services. The agreement, which is expected to close after regulatory approvals, marks one of IBM’s largest acquisitions in recent years and underscores the company’s strategy to expand its role in enterprise AI and data infrastructure.
The deal includes both cash and stock components and will bring Confluent’s data streaming platform into IBM’s growing portfolio of hybrid cloud and AI solutions. IBM has stated that enterprises increasingly need technologies that allow them to move data securely and in real time across complex environments. Confluent’s platform, built on Apache Kafka, allows businesses to integrate and process continuous data flows across applications, cloud systems and analytics tools.
IBM believes this capability is essential to modern AI deployment. As companies adopt generative AI, predictive intelligence and automation tools, real time data has become a key requirement for training, inference and operational decisioning. The company expects Confluent’s streaming technology to complement its existing AI platforms, including watsonx, by enabling enterprises to supply models with more consistent and timely data.
Industry analysts note that the acquisition aligns with IBM’s shift toward high value services that combine cloud, AI and data management. Over the past several years, the company has focused on developing hybrid cloud infrastructure, industry specific AI offerings and secure enterprise solutions. Acquiring Confluent provides technology that helps enterprises integrate large volumes of structured and unstructured data while maintaining control over governance and compliance.
Confluent has grown steadily as companies modernise data architecture and adopt real time analytics. Its platform is used by banks, retailers, logistics providers, telecommunications companies and technology firms for applications such as fraud detection, inventory tracking, customer personalisation and operational monitoring. The company’s streaming technology is viewed as foundational for enterprises building data driven applications across distributed digital systems.
IBM stated that it sees the acquisition as an important step in helping clients accelerate AI adoption. Real time streaming data is essential for applications such as intelligent automation, supply chain visibility, dynamic pricing and personalised customer interactions. With Confluent, IBM aims to offer integrated solutions that combine data ingestion, processing, model training and AI powered insights within a secure governance framework.
The acquisition also reflects broader trends in enterprise technology, where companies are investing in platforms that unify data movement across cloud and on premise infrastructure. As organisations operate across multiple cloud providers and private data centers, the ability to maintain reliable and consistent data flows has become a priority. Confluent’s technology allows companies to build centralised data streaming layers that support diverse applications.
IBM believes that adding Confluent’s services will strengthen its competitive position against major cloud providers that offer proprietary streaming tools. By integrating Confluent’s open ecosystem, IBM aims to provide enterprises with more flexibility across multi cloud environments. The company emphasized that many of its customers operate within hybrid infrastructures and require tools that integrate across vendors and legacy systems.
Confluent’s leadership has stated that joining IBM will help accelerate the adoption of data streaming in enterprises that are undergoing digital transformation. The company expects that IBM’s global reach and enterprise relationships will expand the use of real time data systems across industries. Confluent will continue to support existing customers and maintain compatibility with its current integrations while working with IBM on future innovation.
The acquisition comes at a time when demand for AI technologies is growing rapidly. Enterprises are expanding investments in generative AI and predictive analytics, creating new demand for reliable data pipelines that connect operational systems with AI platforms. IBM expects the combination of watsonx and Confluent to provide an integrated foundation for enterprise scale AI deployments.
Analysts have noted that IBM has made several strategic acquisitions in AI, cloud security and software automation over the past few years, reflecting the company’s goal of modernising its portfolio and competing more effectively with major cloud providers. Integrating Confluent’s data streaming capabilities is expected to strengthen IBM’s ability to offer end to end digital transformation solutions.
The deal will be subject to regulatory approvals in multiple jurisdictions. IBM expects the acquisition to close within the next year. Once completed, Confluent’s technology will be integrated into IBM’s cloud and AI product lines, while continuing to operate its existing customer services and developer ecosystem.
The announcement reinforces IBM’s focus on expanding enterprise AI through investments in data infrastructure. As organisations increase adoption of digital systems, automation and cloud technologies, real time data architecture has become essential for scaling operations. IBM intends to use this acquisition to build a more comprehensive suite of solutions that supports the growing need for intelligent, data driven enterprise applications.