IBM’s $11B Confluent Acquisition Poised to Accelerate Its AI Strategy
Published: 09 Dec 2025
Author: Precedence Research
IBM is taking a different approach to applying artificial intelligence than its competitors. IBM is not looking to build massive AI data centers. Instead, they are building their data and event-streaming platform on top of Apache Kafka, a highly popular open-source software.
Given that AI agents need to interact with a multitude of tools and data across internal and external systems, the Confluent platform is highly appealing. IBM is adding another foundational piece to its cloud computing and AI stacks with the acquisition of Confluent. Using a Confluent event-based platform, AI agents can operate independently while sharing data through a central hub, which is distinct from other parts of the system.
Moreover, Confluent is a good fit for IBM, mainly because both companies are strongly focused on developing AI and platforms that support their applications. The company can sell products from Confluents to IBM consumers, while Confluents can sell IBM products and services to non-IBM users to expand their business. Confluent counts 40% of Fortune 500 companies among its customers, and IBM has been in interactive mode with leading enterprises and government organizations across the globe.
IMB expects to gain meaningful product synergies across its portfolio, along with the confluence on the board. And IBM is looking to accelerate its growth over the period, with free cash flow expected to benefit at the end of the second year. However, IMB is already undergoing revenue growth from its AI business, even amid fragmented demand for leading tech projects. IBM expects to increase its continuous currency revenue by more than 5% this year. It compares to 3% growth in the consecutive years 2023 and 2024. The most recent guidance for 2025 calls for revenue growth of nearly $11.1 billion, an increase of around 20% from 2024. IBM is betting that this collaboration will be popular among data streaming platforms and will generate superior returns compared to the heavy-handed strategies of other tech leaders in the global market.