IBM has announced its intention to acquire DataStax, an AI and data solution provider. This acquisition aims to enhance IBM's watsonx product portfolio by accelerating the use of generative AI and helping companies extract value from large amounts of unstructured data.
The acquisition aligns with IBM's dedication to open-source AI. DataStax is known for creating AstraDB and DataStax Enterprise, which are NoSQL and vector database solutions powered by Apache Cassandra, as well as Langflow, an open-source tool for low-code AI application development.
IBM plans to continue supporting the open-source communities associated with Apache Cassandra, Langflow, Apache Pulsar, and OpenSearch in which DataStax participates. The company has a long-standing commitment to open-source AI through initiatives like the IBM Granite foundation models and Instruct Lab.
Businesses often face challenges in utilizing unstructured data critical for generative AI projects. According to McKinsey, 70% of companies with successful generative AI initiatives encounter data-related issues, with only one percent of enterprise data currently represented in AI models.
IBM aims to help clients scale generative AI using enterprise data through this acquisition. DataStax's vector database is adept at managing unstructured enterprise data efficiently. Additionally, Langflow provides a low-code design environment that supports collaboration across various skill sets.
DataStax products such as AstraDB offer NoSQL and vector database capabilities powered by Apache Cassandra. These technologies will enhance IBM watsonx.data’s existing vector capabilities for production-ready generative AI applications. Apache Cassandra is widely used across industries like software, retail, finance, and e-commerce due to its scalability and high performance.
Langflow serves as a low-code app builder for RAG (retrieval-augmented generation) and multi-agent AI applications. It integrates seamlessly into IBM watsonx.ai by adding flexible middleware capabilities essential for developing generative AI applications.
"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 at IBM Software. "DataStax possesses deep competency in this area and shares IBM's relentless commitment to simplifying and scaling generative AI for the enterprise."
"Enterprises want to deliver production AI fast but are still struggling to unlock the value in their data," stated Chet Kapoor, Chairman and CEO of DataStax. "DataStax's products solve this problem by providing scalability, security, and accuracy needed by developers."
DataStax serves hundreds of customers including FedEx, Capital One, The Home Depot, and Verizon. Founded in 2010 with headquarters in Santa Clara, CA., financial details about the transaction have not been disclosed yet; however it is expected that it will close during Q2 2025 subject to regulatory approvals.