IBM Corp. announced Monday it will buy data streaming platform Confluent for $11 billion, the tech giant’s largest acquisition in years as it doubles down on artificial intelligence (AI) infrastructure.
Under the definitive agreement, IBM will pay $31 per share in cash for all outstanding shares of Silicon Valley-based Confluent. The deal is IBM’s biggest bet yet on enterprise AI, weeks after the company laid off thousands of workers.
Confluent has built its business on Apache Kafka, transforming the open-source technology into what CEO Jay Kreps describes as an “enterprise-grade nervous system for data in motion.” The platform connects, processes, and governs data streams in real time across cloud environments, data centers, and legacy systems — capabilities that have become increasingly critical as companies deploy AI applications requiring constant data flow.
“IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow,” IBM CEO Arvind Krishna said in a statement announcing the deal. He said the acquisition creates a comprehensive data platform purpose-built for AI-driven enterprise environments.
The timing reflects surging demand for real-time data infrastructure. Confluent’s addressable market has doubled to $100 billion since 2021, driven by organizations racing to prepare data infrastructure for genAI models and autonomous software agents. The company serves more than 6,500 organizations, including more than 40% of Fortune 500 companies.
For IBM, the acquisition adds a crucial component to its expanding AI stack, which already includes automation tools, consulting services, and prior acquisitions like Red Hat Inc. and HashiCorp.
The company acquired data analysis startup Seek AI in June, snapped up cloud infrastructure provider HashiCorp in 2024, and has struck recent partnerships with Anthropic for AI deployment and AMD Inc. for quantum-AI computing architecture.
IBM expects the deal to improve adjusted EBITDA within the first year after closing and boost free cash flow in the second year. The company will finance the purchase with existing cash reserves.
Confluent offers multiple deployment options, including its fully managed cloud service, self-hosted platform, and hybrid solutions for various enterprise needs. These products will complement IBM’s existing data and automation portfolio.
The transaction requires approval from Confluent shareholders and regulatory clearance, though shareholders controlling approximately 62% of voting power have already committed their support. Both companies’ boards have approved the agreement.
If finalized, as expected by mid-2026, the acquisition will test whether IBM can successfully integrate a fast-moving data streaming specialist into its century-old enterprise structure while maintaining the agility that made Confluent attractive to customers in the first place.
“IBM grabbed HashiCorp, DataStax, and now Confluent this year all to accelerate its technical acumen in the hyper speed race to embrace AI,” said Subbu Iyer, CEO of Aerospike, a real-time AI database company that works with PayPal, Wayfair, Adobe Inc., and others. “AI models are hungry for more fresh, relevant, real-time data. Getting the right real-time data and putting it to work fast is the new competitive advantage.”
Confluent represents a “natural fit for IBM’s long-term growth strategy as the company addresses IBM’s focus on eliminating data silos for powering AI,” Wedbush Securities analyst Dan Ives said in a note to investors. “We loudly applaud this deal as Arvind takes IBM further into the AI Revolution with more acquisitions likely ahead.”
