The Rise of Data Infrastructure in AI Deals

Most businesses are slowing down deals, but not in the world of data infrastructure. Companies like Meta, Salesforce, and ServiceNow are in a race to purchase others that handle the data for AI. This is because AI needs clean and structured data to work accurately.

Why Data is Now a Big Deal

Data tools are more valuable because AI cannot work without data. The companies are expected to spend $644 billion on generative AI, showing how fast the field is growing. Older tech giants are trying to buy them quickly because there are not many good data management companies.

Speed and Smart Mergers

Companies believe that being fast matters, so they are buying others instead of building new systems. Companies like Confluent, Fivetran, and Qlik help to manage cloud data and may be bought next. These tools help to fix unsorted data, which is now more urgent because AI depends on good data.

Recent Big Deals in the Market

Meta recently spent $14.8 billion for part of Scale AI, and Salesforce wants to buy Informatica for $8 billion. IBM also bought DataStax, and ServiceNow is buying Data.world. All these steps will help tech companies handle data better before feeding it to AI systems like Einstein AI.

Final Thought

Having a lot of data is just not enough. Bad or unsorted data can lead to mistakes, like in Air Canada’s chatbot. AI needs well-organized and meaningful data to avoid giving incorrect output. That is the reason why the right data tools are becoming more essential for companies today.