IBM is gearing up to buy Confluent in a massive, possibly $11 billion, deal, thus sparking an artificial intelligence-obsessed frenzied AI-driven Wall Street machinations amongst analysts and investors.
The sources of the Wall Street Journal state that there may be a binding agreement in the near future, however, there is still the threat of a decline in the fruitful negotiations.
The market capitalization of Confluent was set at $8.09 billion in December 2025, with the shares of the business closing at 23.14 dollars, a figure that has increased by more than 20 % after the deal was announced.
IBM market capitalization $287.84 billion was at and was trading at around $307.94.
This is in the face of the $6.4 billion acquisition by IBM of HashiCorp last year, a strong indication of a significant strategic change toward artificial intelligence in the company.
Confluent’s Edge
By implementing the Apache Kafka technology, Confluent creates its market leadership of real-time data streaming, which provides businesses the opportunity to create and train artificial intelligence models in the retail and financial space.
co-founder and CEO, Confluent Jay Kreps said
“Confluent exceeded its forecasts in the third quarter of 2025, with 24%year-over-year growth in Confluent Cloud revenue and 43% year-over-year growth acceleration in remaining performance obligations, reflecting strong consumption growth and the deepening commitment of our customers,”
The company reported a significant increase in large customer base, with the largest sequential net add in $100,000-plus ARR customer count in the past 2 years.
Flink ARR for Confluent Cloud grew more than 70% sequentially, with over 1,000 customers using Flink during the quarter.
IBM’s Bold Shift
IBM is strategically re-oriented on the basis of hybrid cloud infrastructure and artificial intelligence, and at the same time, it is expanding its quantum computing programs and automating human resource functions to develop better programming capabilities.
It is anticipated that the acquisition will help to fast-track the competitive position of IBM, as compared to that of Amazon Web Services and Microsoft Azure by combining the data-streaming capabilities of Confluent with the watsonx platform of IBM, which will enhance the firm in its quest to lead the enterprise level of artificial intelligence.
Future Outlook
This is expected to be officially announced soon and as such, it is believed that this merger will accelerate the rate of compound annual increase of IBM in its revenues to be higher by the year 2026 itself as a result of the synergies in artificial intelligence.
Although the threat of a collapse is an option, the successful conclusion of the takeover would move IBM forward into the competition with IBM operating stability and Confluent growth in the data infrastructure race valued at $500 billion, which is positive to gain the benefits of a hybrid artificial intelligence implementation.
