IBM acquires DataStax, bolsters AI data capabilities
NEW YORK, UNITED STATES — Tech giant IBM announced its intent to acquire DataStax, an artificial intelligence (AI) and data solution provider.
While specific financial terms of the deal remain confidential, it aims to strengthen IBM’s watsonx portfolio and enhance its generative AI capabilities.
The acquisition, expected to close in the second quarter of 2025, will help enterprises unlock value from vast amounts of unstructured data.
Addressing enterprise AI data challenges
According to McKinsey, even 70% of companies with high-performing generative AI initiatives experience data-related difficulties, with estimates suggesting just one percent of enterprise data is represented in today’s AI models.
“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.”
DataStax’s technology, including AstraDB and DataStax Enterprise, provides NoSQL and vector database capabilities powered by Apache Cassandra. These solutions will enhance IBM watsonx.data, the company’s hybrid, open data lakehouse for AI and analytics.
Global technology leaders join forces
IBM, headquartered in New York, serves clients in more than 175 countries with its hybrid cloud and AI solutions. The technology giant employs over 350,000 people worldwide and reported revenues exceeding $60 billion in 2024. IBM’s watsonx platform has become central to its AI strategy, helping thousands of governments and corporations across critical sectors, including financial services, telecommunications, and healthcare.
DataStax, founded in 2010 and based in Santa Clara, California, brings hundreds of high-profile customers, including FedEx, Capital One, The Home Depot, and Verizon. With approximately 500 employees, DataStax has established itself as a leader in scalable data solutions for AI applications.
“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.”
