IBM has moved to significantly deepen its position in the AI and data infrastructure market with an agreement to acquire Confluent, the streaming data specialist, for USD 11 billion. The deal, announced by both companies, positions real-time data streaming as a foundational layer for enterprise adoption of agentic and generative AI, underscoring how strategically critical data movement has become in modern hybrid cloud architectures.
With organizations adopting AI at unprecedented speed, the capacity to connect, process and govern data in real time is becoming more important than the size or compute power of the models themselves. Confluent, built on the widely adopted open-source technology Apache Kafka, supplies the infrastructure many enterprises use to keep data flowing reliably across distributed systems.
Confluent’s platform is already in use by more than 6,500 customers, including over 40% of the Fortune 500, and its integration partners span major AI ecosystem players such as Anthropic, AWS, Google Cloud, Microsoft, and Snowflake. IBM will acquire all outstanding Confluent shares at USD 31 per share in cash.
Arvind Krishna, IBM’s chairman and CEO, framed the acquisition as a direct response to the fragmentation that exists across enterprise data estates. Organizations now operate across multiple clouds, private environments, on-prem datacenters, and a growing mix of API-driven services and AI agents. Without real-time interoperability across these environments, AI outcomes become constrained. Krishna described Confluent’s streaming platform as the “smart data layer” that will allow IBM to deliver a unified, enterprise-grade fabric for AI across hybrid cloud environments.
For Confluent, the deal would represent both validation and acceleration. CEO and co-founder Jay Kreps said the company has long aimed to help clients unlock value from data in motion, and that joining IBM gives it the reach and enterprise access needed to scale more aggressively. Confluent’s addressable market has doubled in four years – from USD 50 billion to USD 100 billion by 2025 – driven by rising demand for event-driven systems and the data orchestration requirements of AI.
AI systems increasingly depend on continuous streams of high-quality data to operate safely, efficiently and contextually. Confluent positions itself as a critical enabler of those capabilities through stream governance, connectors, stream processing tools, and its recently introduced Streaming Agents. Its offerings cover cloud-native managed services, self-managed deployments, hybrid BYOC models like WarpStream, and private cloud-managed environments for customers with strict sovereignty or security requirements.
IBM’s Automation and AI Infrastructure Portfolio
For IBM, adding Confluent would materially strengthen its automation and AI infrastructure portfolio, further expanding the company’s long-standing investment in open-source ecosystems – an area it has deepened through earlier acquisitions such as Red Hat and HashiCorp. IBM anticipates substantial product synergies across data, automation, consulting and its AI platforms, positioning the acquisition as a catalyst for revenue expansion over the long term.
IBM also expects the deal to be financially attractive. According to its projections, Confluent will be accretive to adjusted EBITDA within one year after closing and to free cash flow by year two. Operational efficiencies are also expected as Confluent’s platform is integrated into IBM’s global scale and productivity programs.
Industry analysts note that the timing reflects a major architectural shift underway. IDC estimates that over one billion new logical applications will be created by 2028, and nearly all will require event-driven, AI-enabled interoperability – an environment in which traditional batch-based data pipelines are insufficient. Real-time data streaming is increasingly seen as the connective tissue that will allow AI agents, automation systems, and cloud applications to operate cohesively and reliably. The acquisition suggests IBM intends to become a primary provider of this capability.
The transaction is subject to shareholder and regulatory approval, though both companies’ boards have endorsed the deal. IBM will fund the acquisition using cash on hand.
Executive Insights FAQ
Why is IBM acquiring Confluent now?
The rise of generative and agentic AI has increased demand for real-time, trusted data movement across hybrid IT. Confluent’s streaming platform fills a critical gap in IBM’s AI infrastructure strategy.
What does Confluent add to IBM’s AI and automation portfolio?
Confluent provides enterprise-grade streaming, governance and event-processing capabilities, enabling IBM to deliver integrated data flows across clouds, apps, and AI agents—an essential layer for scalable AI deployment.
How does this acquisition affect enterprise AI strategies?
Enterprises will gain a more unified data infrastructure, reducing fragmentation and improving the performance and reliability of AI workflows, especially those requiring real-time context.
What will change for Confluent customers?
They can expect expanded global support, deeper integration with IBM’s AI and automation offerings, and accelerated platform innovation, while maintaining Confluent’s open-source foundations.
Is real-time data streaming becoming a competitive differentiator?
Yes. As AI systems increasingly rely on dynamic, contextual information, organizations with robust streaming infrastructure will be able to build more accurate, resilient and automated digital ecosystems.
