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IBM to Acquire DataStax, Deepening watsonx Capabilities and Addressing Generative AI Data Needs for the Enterprise

1. IBM announces intent to acquire DataStax. Enhances generative AI capabilities. 2. DataStax tech integrates with the watsonx portfolio. Unlocks unstructured data. 3. Acquisition reinforces IBM's commitment to open-source AI. Strengthens ecosystem ties. 4. IBM targets data challenges in generative AI projects. Accelerates enterprise time to value.

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FAQ

Why Bullish?

The acquisition is a strategic move to strengthen IBM's AI offerings. Historical examples like IBM’s Red Hat acquisition have led to mid-to-long-term stock appreciation.

How important is it?

The deal significantly enhances IBM's ability to address unstructured data challenges in AI. As generative AI becomes central, integrating DataStax positions IBM for sustained competitive advantage.

Why Long Term?

Integration of advanced data technologies and AI solutions demands time to realize full benefits. Similar investments in generative AI require extended periods for market repositioning.

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Planned acquisition furthers IBM's commitment to open-source innovation; helps clients access untapped, unstructured enterprise data to maximize the impact of generative AI ARMONK, N.Y., Feb. 25, 2025 /PRNewswire/ -- IBM (NYSE: IBM) today is announcing its intent to acquire DataStax, an AI and data solution provider. DataStax's technology will enhance IBM's watsonx portfolio of products accelerating the use of generative AI, helping companies unlock value from vast amounts of unstructured data. The acquisition also builds on IBM's commitment to open-source AI. DataStax is the creator of AstraDB and DataStax Enterprise, NoSQL and vector database capabilities powered by Apache Cassandra®; and Langflow, the open-source tool and community for low-code AI application development. IBM will continue to support, engage, and innovate with the open-source Apache Cassandra®, Langflow, Apache Pulsar™, and OpenSearch communities in which DataStax participates. IBM's long-standing commitment to open-source AI includes the open-source IBM Granite foundation models and Instruct Lab, a revolutionary approach to advancing true open-source innovation around LLMs. Harnessing unstructured data for the enterprise Businesses are struggling to harness valuable, unstructured data from across their business, which is critical for powering generative AI. Without tools to properly ingest and manage this untapped data, costly generative AI projects will fail to deliver their full potential. Even 70% of companies with high-performing generative AI initiatives experience data-related difficulties, according to McKinsey, and it is estimated that just one percent of enterprise data is represented in today's AI models. IBM is a leader in helping clients scale generative AI and transform their business using enterprise data. The acquisition of DataStax enhances these efforts. Their vector database excels at harnessing unstructured enterprise data and accelerating its time to value, and Langflow provides a graphical, low-code design environment and component orchestration for generative AI apps that facilitates collaboration across diverse skillsets. "Businesses cannot realize the full potential of generative AI without the right infrastructure – open-source tools and technologies that empower developers, harness unstructured data, and provide a strong foundation for AI applications," says Dinesh Nirmal, Senior Vice President, IBM Software. "DataStax possesses deep competency in this area and shares IBM's relentless commitment to simplifying and scaling generative AI for the enterprise." "Enterprises want to deliver production AI fast, but are still struggling to unlock the value in their data to power AI applications and agents," says Chet Kapoor, Chairman and CEO of DataStax. "DataStax's products solve this problem, accelerating AI's promise with the scalability, security, and accuracy developers and enterprises need. We've long said that there is no AI without data, and are excited to execute this vision with IBM." DataStax's hundreds of customers include FedEx, Capital One, The Home Depot and Verizon. DataStax was founded in 2010 and is headquartered in Santa Clara, CA. Financial details of the transaction were not disclosed.  The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approvals. About IBMIBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information. Media contact:Kevin ZawackiCommunications, IBM Software[email protected] SOURCE IBM

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