IBM Eyes Major Acquisition to Boost Cloud Services

IBM is in advanced talks to acquire Confluent for about $11 billion, aiming to enhance its cloud services capabilities. The acquisition aligns with IBM's strategy to focus on software, capitalizing on rising demand for data infrastructure driven by generative AI developments.

IBM is reportedly in the final stages of negotiations to acquire Confluent, a data-infrastructure company, for approximately $11 billion. This acquisition is part of IBM's strategy to enhance its cloud services and capitalize on the growing demand fueled by artificial intelligence.

Sources suggest the deal could be announced soon, although the Wall Street Journal's report is yet to be confirmed independently. Confluent, known for processing real-time data streams, could significantly expand IBM's capabilities in the data infrastructure sector.

Amid concerns about the slowed growth in its cloud software business, IBM's acquisition of Confluent would represent a strategic move to maintain its momentum and meet investor expectations. Under CEO Arvind Krishna, IBM has increasingly focused on software to leverage increased spending on cloud services.