IBM to Acquire AI and Data Solutions Provider DataStax

IBM has announced the planned acquisition of AI and data solutions provider DataStax, in a move aimed at enhancing its watsonx portfolio and advancing generative artificial intelligence (AI) capabilities for enterprises. Financial terms of the deal were not disclosed, but the acquisition is expected to close in the second quarter of 2025, subject to regulatory approvals.

The acquisition will integrate DataStax's vector database and AI-driven data management capabilities into IBM's expanding AI ecosystem, addressing the challenge enterprises face in unlocking value from vast amounts of unstructured data.

"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," said Dinesh Nirmal, senior vice president of IBM Software, in a statement. "DataStax possesses deep competency in this area and shares IBM's relentless commitment to simplifying and scaling generative AI for the enterprise."

DataStax is known for AstraDB and DataStax Enterprise, its NoSQL and vector database solutions built on Apache Cassandra, as well as Langflow, an open source tool for low-code AI application development. IBM said it plans to continue supporting and developing Apache Cassandra, Langflow, and other open source initiatives such as Apache Pulsar and OpenSearch, reinforcing its commitment to open AI ecosystems.

"I've had the awesome privilege to be part of the DataStax journey for the last five-plus years and I couldn't be more excited for our next chapter," said Chet Kapoor, chairman and CEO at DataStax, in a post on LinkedIn. "We have long said that there is no AI without data, and this vision will now be amplified with IBM."

With AI adoption increasing across industries, IBM's acquisition of DataStax aims to bridge a critical gap in enterprise AI deployment. The industry analysts at McKinsey estimate that only 1% of enterprise data is currently utilized in AI models, while 70% of companies with high-performing AI initiatives still face data-related challenges. DataStax's technology is expected to enhance IBM watsonx.data, IBM's hybrid data lakehouse for AI and analytics, by enabling enterprises to manage and leverage unstructured data more effectively.

DataStax's solutions are used by major corporations, including FedEx, Capital One, The Home Depot, and Verizon. The company, founded in 2010 and headquartered in Santa Clara, California, has been instrumental in advancing database technology for AI workloads. 

About the Author

John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He's been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he's written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS.  He can be reached at [email protected].

Featured

  •  laptop on a clean desk with digital padlock icon on the screen

    Data Privacy a Top Concern as Orgs Scale Up AI Agents

    As organizations race to integrate AI agents into their cloud operations and workflows, they face a crucial reality: while enthusiasm is high, major adoption barriers remain, according to a new Cloudera report. Chief among them is the challenge of safeguarding sensitive data.

  • chart with ascending bars and two silhouetted figures observing it, set against a light background with blue and purple tones

    Report: Enterprises Are Embracing Agentic AI

    According to a new report from SnapLogic, 50% of enterprises are already deploying AI agents, and another 32% plan to do so within the next 12 months..

  • stacks of glowing digital documents with circuit patterns and data streams

    Mistral AI Intros Advanced AI-Powered OCR

    French AI startup Mistral AI has announced Mistral OCR, an advanced optical character recognition (OCR) API designed to convert printed and scanned documents into digital files with "unprecedented accuracy."

  • student using a tablet with math symbols dissolving into a glowing AI

    Survey: Students Say AI Use Can Reduce Math Anxiety

    In a recent survey, 56% of high school students said that the use of artificial intelligence can go a long way toward reducing math anxiety.