IBM is reportedly in advanced discussions to acquire data infrastructure company Confluent for around $11 billion, according to the Wall Street Journal. The move aims to strengthen IBM’s position in the growing cloud services market. Confluent, an open-source platform that handles large-scale real-time data—from bank transactions to website clicks—could see the deal announced as soon as Monday, the WSJ said, citing unnamed sources. Reuters could not immediately confirm the report, and neither company responded to requests for comment outside business hours.

In October, Reuters reported that Confluent was exploring a sale and had engaged an investment bank to manage interest from potential buyers. Confluent’s market capitalization is roughly $8.09 billion, while IBM, based in New York, is valued at about $287.84 billion. Investor caution has risen after IBM reported slower growth in its core cloud software business in October, raising concerns about sustaining momentum. Analysts noted that stronger software performance will be essential for IBM to maintain overall growth.

Acquisitions remain a central part of IBM’s strategy to meet investor expectations. Last year, IBM acquired HashiCorp for $6.4 billion, expanding its cloud offerings to meet rising AI-driven demand. Under CEO Arvind Krishna, the company has emphasized software and cloud services to capitalize on growing corporate cloud spending.

IBM’s interest in Confluent reflects the increasing demand for data infrastructure, driven in part by the race to develop generative AI. In May, Salesforce acquired software maker Informatica for about $8 billion to boost its AI capabilities. Confluent’s shares, based in Mountain View, California, closed at $23.14 on Friday, down slightly.