IBM announced on Monday it is acquiring Confluent for $11 billion, sending shares of the data streaming platform up about 29% in morning trading.

By midday trading, at the time of this writing, Confluent (CFLT) stock was holding steady, up 29%. International Business Machines Corporation (IBM) stock was up about 1.5%.

Confluent provides a leading open-source enterprise data streaming platform that connects, processes, and governs reusable and reliable data and events in real time, foundational for the deployment of AI.

The deal is an example of how IBM is actively engaging in the increasingly competitive, high-stakes AI arms race that’s now dominating technology companies.

Why is this a big deal?

The deal is one of the largest in recent memory for IBM, The Wall Street Journal reported

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