IBM Snaps Up Confluent for $11B to Supercharge Enterprise AI Data Streaming
IBM announces $11B acquisition of Confluent to build a smart data platform, enabling real-time streaming for generative and agentic AI deployments across enterprise hybrid clouds.
IBM has entered a definitive agreement to acquire Confluent for $11 billion, purchasing all outstanding shares at $31 each in cash to create an end-to-end smart data platform tailored for enterprise AI. This deal positions real-time data streaming as foundational for deploying generative and agentic AI, connecting applications, analytics, data systems, and AI agents in hybrid cloud environments. Confluent's open-source platform processes and governs reusable data events instantly, addressing the surge in global data volume expected to double by 2028.
IBM CEO Arvind Krishna emphasized that real-time data unlocks AI potential, stating no enterprise can succeed with outdated information, and Confluent offers the most advanced streaming technology. The acquisition integrates Confluent into IBM's software division, driving synergies across AI products, automation, data services, and consulting while leveraging IBM's global reach for accelerated revenue growth. Financially, the move promises accretive adjusted EBITDA in the first full year post-close and free cash flow gains in year two, funded entirely by IBM's cash reserves.
Confluent, with over $1 billion in annual revenue run rate, provides governed data streams critical for AI agents, enhancing IBM's hybrid cloud resilience and intelligence. Post-announcement, Confluent shares jumped 28.4% while IBM's rose about 1.7%, reflecting market enthusiasm for this AI infrastructure play. The transaction, approved by both boards, awaits shareholder and regulatory nods, targeting mid-2026 closure.
This acquisition signals enterprises prioritizing real-time data pipelines amid AI's rapid evolution, enabling faster, more reliable model training and inference. IBM gains a competitive edge in cloud and AI, countering rivals by streamlining data flows between environments, APIs, and applications. Analysts view it as a strategic pivot for legacy tech giants into high-growth AI ecosystems.
As agentic AI demands instantaneous, trustworthy data, deals like this reshape enterprise tech stacks, promising operational efficiencies and innovation at scale.
