IBM (IBM, Financial) is ramping up its push into artificial intelligence and quantum computing, aiming to help enterprises spin up custom AI agents in under five minutes and go head-to-head with U.S. rivals.
In an interview with Reuters, CEO Arvind Krishna said IBM's Granite family of AI models will integrate with tools from Salesforce (CRM, Financial), Workday (WDAY, Financial) and Adobe (ADBE, Financial), allowing customers to build their own agents with minimal setup.
Last month, IBM reported a $6 billion “book of business” in generative AI, signaling growing demand for its software and services. The company also partnered with Lumen (LUMN) to deliver enterprise-grade AI solutions, though its shares edged slightly lower in premarket trading.
Beyond AI, Krishna pointed to quantum computing as a key battleground. IBM has pledged to invest $150 billion in U.S. infrastructure over five years, targeting mainframes and quantum systems to build out its next-gen computing footprint.
That investment follows a 1.48% gain in IBM's stock earlier in the day, showing investor interest in tech companies with large R&D budgets. IBM didn't offer detailed growth forecasts but said it aims to offset weaker hardware sales through AI, partnerships and capital deployment.
Software and services now make up about 43.2% of IBM's revenue, driven by increased adoption of cloud and AI-enabled platforms. Its System z mainframe business still sees mid-single-digit growth, but high-margin AI and quantum tools are expected to fuel bigger gains.
“We see a clear runway as companies look to standardize AI operations across legacy infrastructures,” Krishna told Reuters.
Internal projections suggest the Lumen deal and Granite rollout could generate double-digit growth in recurring software revenue.
Why it matters: IBM is positioning itself as a one-stop shop for enterprise AI and quantum needs, combining deep R&D spending with fast-deployment tools and strategic partnerships. Investors will look to the company's July earnings for signs these efforts are paying off.
