IBM accelerates cloud drive with $11 billion Confluent deal as AI demand booms

IBM accelerates cloud drive with  billion Confluent deal as AI demand booms

By Reuters
Publication Date: 2025-12-08 13:07:00

By Arsheeya Bajwa and Milana Vinn

Dec 8 (Reuters) – IBM said on Monday it will buy data infrastructure company Confluent in a deal valued at $11 billion, ramping up its cloud-computing offerings to ​capitalize on an AI-driven demand boom.

Big Blue, under CEO Arvind Krishna, has doubled down on M&A ‌to beef up its cloud and software business – a high-growth, high-margin area – as customers invest to upgrade their digital infrastructure to house complex ‌artificial intelligence applications.

Mountain View, California-based Confluent provides technology needed to manage massive, real-time data streams for artificial intelligence models.

“IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster,” Krishna said in a statement.

“With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI.”

TALKS BEGAN ⁠IN SUMMER

The companies began initial talks about ‌the…