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IBM plans to buy Confluent, strengthening AI cloud services and real-time data solutions for growing demand.
IBM plans to acquire Confluent, a data-infrastructure supplier for about $11 billion, with the aim of improving its AI cloud services, in order to meet the rising needs for cloud computing and immediate data solutions. Confluent, a US-based IT business known for managing huge streams of real-time data, has been looking into an offer to sell since October and has hired an investment bank to help guide the process. Neither business has commented on the acquisition, but speculation has pushed Confluent's shares up 20% to 28% in after-hours trade.
The acquisition is part of IBM's aim to improve its cloud computing division, which recently experienced slow growth in October. Experts believe that adding Confluent's real-time data abilities with IBM could improve its software performance. That is essential to maintain the overall growth and investor trust. This reflects IBM's acquisition of HashiCorp in 2024 for $6.4 billion. Strengthening its cloud offerings to meet the rising AI demand. The move also reflects an overall trend in the IT industry, where businesses are spending heavily on data infrastructure to allow AI. Salesforce, for example, recently decided to pay $8 billion for software company Informatica in order to improve its artificial intelligence capabilities.
Financially, IBM's market worth is around $287.84 billion, while Confluent's market share is about $8.09 billion, making the acquisition a strategic yet realistic move for the IT giant. Combining Confluent's abilities with IBM's AI platforms could position the company as a leader of next-generation cloud services. Transforming the companies into independent cloud systems that predict needs in real time, where AI-powered infrastructures serve as self-learning digital brains.
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