My WordPress

Tag: IBM

  • IBM Confirms $10 Billion Quantum Investment Despite Quarterly Shortfall

    IBM Confirms $10 Billion Quantum Investment Despite Quarterly Shortfall

    IBM has reaffirmed its previous plans to invest more than $10 billion in quantum computing over the next five years, positioning the technology as a central part of its long-term strategy even as the company reported weaker-than-expected second-quarter performance.

    In a recent letter to investors, IBM Chairman and CEO Arvind Krishna said the investment would cover research and development, capital expenditure, manufacturing expansion, acquisitions, and broader ecosystem development. The company also maintained its target of delivering its first large-scale fault-tolerant quantum computer by 2029.

    “…quantum computing is no longer decades away, it is upon us, and we are investing aggressively,” Krishna wrote.

    The comments appeared in IBM’s preliminary financial results for the second quarter of 2026. The company reported revenue of $17.2 billion, representing year-over-year growth of 1%. Software revenue increased by 5%, consulting revenue remained flat and infrastructure revenue declined by 7%.

    IBM attributed the infrastructure decline partly to weaker-than-expected performance from its Z mainframe business and associated transaction-processing software. According to Krishna, several major customer deals did not close within the expected period as organizations redirected capital spending toward servers, storage and memory amid supply constraints and anticipated price increases.

    The company also cited rapidly evolving cybersecurity concerns as a distraction for customers during the quarter.

    Despite the shortfall, IBM highlighted several areas of growth, including an 11% increase in Red Hat revenue and record performance within its distributed infrastructure business. IBM said distributed infrastructure revenue rose 37%, supported by demand for Power systems and storage.

    The company also recently announced a letter of intent with the U.S. Department of Commerce to develop Anderon, which IBM described as the world’s first dedicated quantum wafer foundry. The project would be supported by $1 billion in incentives through the CHIPS program and an additional $1 billion contribution from IBM.

    A dedicated foundry could give IBM greater control over the fabrication and scaling of quantum processors while supporting the transition from experimental devices to more standardized production. Manufacturing reliability, yield and supply-chain capacity will become increasingly important as quantum systems move toward larger numbers of physical and logical qubits.

    IBM’s planned $10 billion investment also speaks to another trend in the quantum sector. Major technology companies are no longer investing only in processors. They are building integrated ecosystems that include hardware, error correction, software, cloud access, application research and partnerships with enterprises and research institutions.

    For IBM, the challenge will be balancing those long-term investments with pressure to deliver stronger near-term financial performance.

  • IBM to Invest More Than $10 Billion to Advance Fault-Tolerant Quantum Computing

    IBM to Invest More Than $10 Billion to Advance Fault-Tolerant Quantum Computing

    PRESS RELEASE — IBM (NYSE: IBM) has announced plans to invest more than $10 billion in quantum computing over the next five years. The investment will span research and development, capital expenditure, manufacturing scaling, ecosystem partnerships, and M&A. Together, these areas are designed to accelerate IBM’s quantum roadmap beyond delivering the world’s first large-scale, fault-tolerant quantum computer in 2029, and advance quantum leadership anchored in the United States.

    It builds on the broadest quantum foundation in the industry, including the largest fleet of quantum computers across the globe, the most widely used quantum software, and a client and partner network of more than 340 organizations running real workloads today. This investment funds the next stage of that foundation, carrying IBM’s lead from today’s commercial quantum computers towards fault-tolerant scale systems.

    “The quantum era is no longer ahead of us, it has started. Our clients, partners and users around the world are tapping into IBM quantum computers to do work that was impossible a few years ago,” said Arvind Krishna, Chairman & CEO, IBM. “The pace of discovery with quantum computers is accelerating rapidly and this investment powers our ability to deliver the next generation of quantum hardware, software, and manufacturing.”

    IBM’s quantum leadership today

    This investment reinforces IBM’s mission to bring useful quantum computing to the world and builds on the most advanced quantum program in the industry:

    • Expansive Global Quantum Fleet: IBM operates the world’s largest and most powerful fleet of quantum computers. As of today, the company has deployed over 90 quantum systems across the globe via the cloud and dedicated on-site deployments – including more quantum computers than the rest of the industry combined. This fleet includes quantum computers operating at IBM quantum centers in New York and Germany; at the Cleveland Clinic in Ohio, Rensselaer Polytechnic Institute in New York, PINQ in Quebec, The University of Tokyo and RIKEN in Japan, Yonsei University in South Korea, and BasQ in Spain, with additional systems coming soon in Chicago, and at Amaravati Quantum Valley in India.
    • Roadmap to the World’s First Large-Scale, Fault-Tolerant Quantum Computer: IBM has a clear path to delivering IBM Quantum Starling in 2029 – the world’s first large-scale, fault-tolerant quantum computer which will be capable of executing 20,000 times more operations than today’s existing systems. Starling will lay the foundation for IBM Quantum Blue Jay, which will run one billion quantum operations across 2,000 qubits. These systems will deliver the transformative scale needed for quantum to take on the most challenging and currently intractable problems across science and industries.
    • Expanding Adoption: Since 2017, IBM’s quantum program has signed more than $1.1 billion in contracts with clients to advance their exploration and use of quantum computing. Today, a network of more than 340 IBM Quantum Network members spanning financial services, healthcare, materials science, academia and government are using IBM quantum computers to pursue real-world algorithmic discovery.
    • America’s First Quantum Foundry: With the support of the United States Department of Commerce, IBM recently announced plans to launch Anderon, the world’s first pure-play quantum wafer foundry. IBM will contribute $1 billion of cash into Anderon, alongside significant intellectual property, assets, and a skilled workforce.
    • Path to Quantum Advantage: IBM is confident that its partners using IBM quantum computers will demonstrate quantum advantage in 2026. The company is seeing accelerated progress on this path as evidenced by recent experiments that confirm quantum as a useful scientific tool, including work with the Cleveland Clinic and RIKEN to model a 12,635-atom protein; a collaboration with national laboratories and universities to accurately simulate magnetic materials; and research with universities to prove the nature of a never-before-seen molecule.
    • The World’s Most Popular Quantum Software: Developed by IBM, Qiskit is the world’s preferred software stack for quantum computing and algorithms research, built to optimize and execute quantum workloads and used by nearly 70 percent of quantum developers today and have executed over 4 trillion quantum circuits on quantum computers.

    About IBM

    IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information.