IBM to Acquire DataStax to Expand Generative AI Capabilities

IBM has announced that it plans to acquire DataStax, a provider of AI and data solutions. The acquisition will strengthen IBM’s watsonx portfolio, helping businesses use unstructured data for generative AI applications.

The acquisition is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions. Financial terms of the deal were not disclosed.

IBM said that the deal aligns with its focus on open-source AI. DataStax, known for AstraDB and DataStax Enterprise, provides NoSQL and vector database capabilities powered by Apache Cassandra. The company has also developed Langflow, an open-source low-code AI application development tool.

IBM confirmed its commitment to supporting and innovating within open-source communities, including Apache Cassandra, Langflow, Apache Pulsar, and OpenSearch. The company also continues its work on open-source AI initiatives such as IBM Granite foundation models and Instruct Lab.

Businesses face challenges in managing unstructured enterprise data, which is crucial for generative AI. McKinsey reports that 70% of companies with high-performing AI initiatives experience data-related issues, with only 1% of enterprise data represented in 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,” said Dinesh Nirmal, senior vice president of IBM Software. “DataStax possesses deep competency in this area and shares IBM's commitment to simplifying and scaling generative AI for the enterprise.”

DataStax’s products will integrate with IBM’s existing offerings. AstraDB and DataStax Enterprise will enhance the vector capabilities of IBM watsonx.data, a hybrid data lakehouse for AI and analytics. Langflow will add flexible middleware capabilities to IBM watsonx.ai, the company’s generative AI development studio.

"Enterprises want to deliver production AI fast but are still struggling to unlock the value in their data to power AI applications and agents," said 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 serves customers such as FedEx, Capital One, The Home Depot, and Verizon. Founded in 2010, the company is headquartered in Santa Clara, California.