IBM (IBM) Sees Growth in AI Software Integration and Customization

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May 06, 2025
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IBM's CEO, Arvind Krishna, highlighted the company's strategy to offer software that integrates AI agents from various vendors, including Salesforce, Workday, and Adobe. IBM aims to help clients create their own AI agents for unexplored use cases. The integration tools, leveraging IBM's Granite AI models and alternatives from Meta Platforms and Mistral, promise to simplify the process to just five minutes.

Krishna noted that the growing interest in using diverse AI models for different tasks will boost demand for IBM's services. Last month, IBM reported a $6 billion business record in generative AI, akin to ChatGPT. Despite being a smaller cloud service provider compared to Amazon Web Services and Microsoft, IBM customizes its technology for clients managing data across multiple clouds or their own infrastructure.

In April, IBM announced a $150 billion investment in the U.S. over the next five years, continuing its 60-year history of producing large computers domestically. Krishna also mentioned plans to manufacture quantum computers in the U.S., expecting a robust market in mainframes, AI, and quantum computing.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.