IBM is reportedly in advanced negotiations to acquire data infrastructure company Confluent for approximately $11 billion, a move aimed at enhancing IBM's ability to capture growing cloud service demand.

According to sources familiar with the matter, the deal could be announced as early as Monday U.S. time.

Confluent is an open-source platform for processing massive real-time data streams, ranging from banking transactions to website clicks. In October, reports indicated that Confluent was exploring a sale after attracting interest from potential buyers and had hired an investment bank to oversee the process.

Per LSEG data, Confluent currently holds a market capitalization of around $8.09 billion, while New York-based IBM's market cap stands at approximately $287.84 billion.

Investors turned cautious after IBM reported slowing growth in its core cloud software business in October, raising concerns about the company's ability to sustain momentum. Analysts suggest IBM will need stronger software performance to maintain overall growth.

IBM’s acquisition strategy remains a key focus in meeting investor expectations. Last year, the company expanded its cloud-based services by acquiring HashiCorp for $6.4 billion to address rising AI-driven demand.

Under CEO Arvind Krishna, IBM has intensified its focus on software operations, aiming to capitalize on increasing cloud service spending.

Interest in Confluent highlights surging demand for data infrastructure firms as enterprises race to develop generative AI (GAI). In May, Salesforce agreed to acquire software maker Informatica for roughly $8 billion to bolster its AI capabilities.