IBM to Acquire DataStax to Power Generative AI, Tapping into 93% of Enterprise Data

IBM has announced plans to acquire data management company DataStax, a move designed to strengthen its watsonx enterprise AI portfolio and help businesses unlock value from unstructured data, which accounted for 93% of all enterprise data in 2024. If completed, the deal would enhance AI scalability by integrating DataStax’s NoSQL and vector databases into IBM’s ecosystem, improving data management and retrieval for generative AI applications.

Enhancing AI scalability with NoSQL and Vector databases

DataStax’s AstraDB and DataStax Enterprise would improve the vector capabilities of watsonx.data —  IBM’s AI-optimized open data lakehouse — enhancing its ability to manage and analyse complex, high-volume data. This integration will make it easier for AI models to process and learn from it. By combining DataStax with watsonx, IBM aims to enhance AI’s ability to process structured and unstructured data, unlocking deeper business insights.

AstraDB and DataStax Enterprise are both built on Cassandra, a highly-scalable open-source NoSQL database known for handling massive datasets. Given DataStax’s strong AI-driven customer base, its integration with watsonx is a logical next step.

Langflow integration to simplify AI app development

As part of the planned acquisition, IBM intends to integrate Langflow, a low-code, open-source AI app builder, into watsonx.ai  — IBM’s end-to-end development platform. This integration will streamline the creation of AI applications, particularly for Retrieval-Augmented Generation and multi-agent AI systems, making AI adoption more accessible for enterprises.

Both companies share a strong commitment to open-source AI, with IBM incorporating technologies like Iceberg, Spark, Velox, and Presto into watsonX. IBM will continue supporting open-source communities and resources, including database Apache Cassandra and low-code tool Langflow.

“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, IBM Software, in a press release. “DataStax possesses deep competency in this area and shares IBM’s relentless commitment to simplifying and scaling generative AI for the enterprise.”   

“We’ve long said that there is no AI without data, and are excited to execute this vision with IBM,” Chet Kapoor, chairman and chief executive officer of DataStax, said while adding that its commitment to supporting its existing customers will be “unwavering” during the transition.

A history of collaboration in AI and databases

DataStax and IBM have been collaborating since 2020, delivering DataStax Enterprise as a managed service on IBM Cloud, and later providing hybrid cloud solutions for enterprises using Cassandra-based technology. In 2024, DataStax introduced Hyper-Converged Database and its Mission Control management tool, deploying them on IBM’s OpenShift cloud platform.

IBM also has a legacy in database technology, having developed the first modern database for American Airlines in the 1960s. According to DataStax strategist Patrick McFadin, American Airlines now uses Cassandra for critical workloads.

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