In a groundbreaking development, Hewlett Packard Enterprise (HPE) is currently engaged in advanced negotiations to acquire Juniper Networks in a deal estimated to be valued at around $13 billion, sources close to the matter revealed to Reuters on Monday. The potential acquisition, expected to be officially announced later this week, has already sent ripples through the stock market. Hewlett Packard’s shares experienced a 7.7% decline, while Juniper Networks saw an impressive 21% surge during extended trading.

The move underscores Hewlett Packard Enterprise’s strategic focus on fortifying its presence in artificial intelligence (AI), aligning with reports earlier in the day from The Wall Street Journal. While Hewlett Packard refrained from offering official comments on the WSJ report, Juniper Networks is yet to respond to Reuters’ request for a statement.

The anticipated acquisition represents a pivotal moment for Hewlett Packard Enterprise, a technology stalwart boasting nearly a century of industry expertise. The company aims to leverage Juniper Networks’ specialized capabilities to navigate the rapidly evolving tech landscape successfully. This strategic step comes on the heels of HPE’s announcement last year, signaling its foray into cloud computing services tailored explicitly for empowering AI systems, reminiscent of the capabilities showcased by the likes of ChatGPT.

Juniper Networks, a recognized leader in high-performance network solutions, offers a comprehensive suite of services encompassing routing, switching, Wi-Fi technology, network security, AI-enabled enterprise networking operations (AIOps), and software-defined networking (SDN) technologies. Should the acquisition materialize, it could signify a significant advancement for these two tech giants, potentially reshaping the AI and networking industries. The market eagerly awaits official confirmation and details of this transformative tech deal.