IBM Pledges $150 Billion Investment in US Manufacturing and AI Capabilities

IBM pledges to spend $150B in the US over the next few years | TechCrunch

Enterprise tech giant IBM says that it plans to invest $150 billion in the U.S. over the next five years, which will include a "more than" $30 billion investment in mainframe and quantum computing research. The goal is to fuel the economy and "accelerate [IBM's] role as the global leader in computing," the company said in a press release Monday. "We have been focused on American jobs and manufacturing since our founding 114 years ago," CEO Arvind Krishna said in a statement, "and with this investment and manufacturing commitment, we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities." As Bloomberg notes, companies ranging from Apple to Nvidia have announced plans to spend billions of dollars boosting their U.S. manufacturing presence since President Donald Trump's election. Many of the plans closely track prior spending trends, or were already in the works before the election.

IBM Plans to Invest $150 Billion Domestically in Latest Tech Sector Pledge

Sign up for Your Places: Global Update. All the latest news for any part of the world you select. Get it sent to your inbox. IBM on Monday joined a slew of technology companies to announce plans for new investments in the United States, as the Trump administration pressures firms to expand their U.S. manufacturing. The software company, headquartered in Armonk, N.Y., said it would invest $150 billion in the United States over the next five years, including $30 billion to support production of its mainframe and quantum computers. The announcement, framed in part as an effort to fuel the American economy, comes after the chipmaker Nvidia said this month it would invest $500 billion and produce all of its A.I. supercomputers in the United States. "With this investment and manufacturing commitment, we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," Arvind Krishna, IBM's chief executive, said in a statement. But whether pledges from IBM and other tech giants fully come to fruition remains to be seen. Investments touted by major firms, including during President Trump's first term, have at times fallen short of plans described in their announcements. A $10 billion project announced in Wisconsin by the electronics manufacturer Foxconn in 2018 -- hailed by Mr. Trump as the "eight wonder of the world" -- fell far short of expectations. The announcements have come steadily since Mr. Trump's inauguration. Taiwan Semiconductor Manufacturing Company, the world's largest chip manufacturer, said last month it would spend $100 billion in the United States over the next four years to expand its production capacity and bring its most advanced semiconductor processes to its operations in Arizona. In February, days after Apple's chief executive met with Mr. Trump, the company said that it planned to spend $500 billion and hire 20,000 people in the United States over the next four years, and open a factory in Texas to make the machines that power the company's push into artificial intelligence. In January, Mr. Trump announced a joint venture between OpenAI, SoftBank and Oracle to create at least $100 billion in computing infrastructure to power artificial intelligence, an initiative that added to tech companies' significant investments in U.S. data centers, although the push to form the venture predated his term. The Trump administration has pressured companies to produce more in the United States, with a particular aim at China. Even so, it has spared smartphones, computers, semiconductors and other electronics from tariffs Mr. Trump imposed on Chinese goods as part of his trade war.

IBM pledges to invest $150 billion in US manufacturing over the next five years

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? IBM has joined the list of companies pledging to pour billions into the US manufacturing industry. The software giant has announced it will be investing $150 billion in the United States over the next five years, including $30 billion toward production of its mainframe and quantum computers. Arvind Krishna, IBM chairman, president and chief executive officer, said, "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities." IBM writes that it is one of the nation's largest technology employers, adding that its data processing systems have enabled the US Social Security system, the Apollo Program that put a man on the moon, and powered businesses in every industry. More than 70% of the entire world's transactions by value run through the IBM mainframes that are manufactured in America. A $30 billion chunk of the $150 billion investment will go toward expanding IBM's US manufacturing of quantum computers and mainframes. The company writes that its Quantum Network provides access to IBM's quantum systems for nearly 300 Fortune 500 companies, academic institutions, national laboratories, and startups, and is accessed by over 600,000 active users. IBM is the latest company to pledge billions of dollars in investment in US manufacturing in the hope of mitigating the impact of tariffs imposed by the Trump administration, which threaten to raise production costs. However, Trump said there are exemptions for smartphones, computers, semiconductors, and other electronics. The tariffs are designed to bring more manufacturing back to the US, though the president's dream of an American-made iPhone will likely remain an impossibility. Nvidia this month said it was investing $500 billion in US manufacturing and would move production of all of its AI supercomputers to Arizona and Texas across the next four years. In March, TSMC announced it would be investing an extra $100 billion in US chip manufacturing, bringing its total to $165 billion. This came soon after Apple said it would make a $500 billion investment in US manufacturing over the next four years. As part of the package, Cupertino will build a new advanced facility in Houston that will produce servers, previously made outside of the US, that support Apple Intelligence. Whether these companies live up to the full extent of their promised investments remains to be seen, of course.

IBM announces $150 billion investment in U.S. manufacturing, research

Anne Marie D. Lee is an editor for CBS MoneyWatch. She writes about topics including personal finance, the workplace, travel and social media. IBM on Monday announced that it will invest $150 billion in U.S. manufacturing to "fuel the economy." The investment will include more than $30 billion that will go toward research and development to allow the computing giant to continue manufacturing its mainframe and quantum computers in the U.S. "Technology doesn't just build the future -- it defines it," said Arvind Krishna, IBM chairman, president and chief executive officer in a statement Monday. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities." IBM's mainframes are currently manufactured in Poughkeepsie, New York.

IBM pledges $150 billion to boost U.S. tech growth, computer manufacturing

IBM Chairman and CEO Arvind Krishna at an IBM facility in Poughkeepsie, N.Y., in 2022.Andrew Harnik / AP file International Business Machines Corporation on Monday announced it will invest $150 billion in the U.S. over the next five years, including more than $30 billion to advance American manufacturing of its mainframe and quantum computers. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," IBM CEO Arvind Krishna said in a release. The company's announcement comes weeks after President Donald Trump unveiled a far-reaching and aggressive "reciprocal" tariff policy to boost manufacturing in the U.S. As of late April, Trump has exempted chips, as well as smartphones, computers, and other tech devices and components, from the tariffs. IBM said its investment will help accelerate America's role as a global leader in computing and fuel the economy. The company said it operates the "world's largest fleet of quantum computer systems," and will continue to build and assemble them in the U.S., according to the release. IBM competitor Nvidia, the chipmaker that has been the primary benefactor of the artificial intelligence boom, announced a similar push earlier this month to produce its NVIDIA AI supercomputers entirely in the U.S. Nvidia plans to produce up to $500 billion of AI infrastructure in the U.S. via its manufacturing partnerships over the next four years. Last week, IBM reported better-than-expected first-quarter results. The company said it generated $14.54 billion in revenue for the period, above the $14.4 billion expected by analysts. IBM's net income narrowed to $1.06 billion, or $1.12 per share, from $1.61 billion, or $1.72 per share, in the same quarter a year ago. IBM's infrastructure division, which includes mainframe computers, posted $2.89 billion in revenue for the quarter, beating expectations of $2.76 billion.

IBM pledges to invest $150B in the US over the next five years - SiliconANGLE

According to the company, more than $30 billion will be allocated to research and development activities. The engineering initiative's priorities are set to include mainframes and quantum computing. IBM didn't go into detail about its research priorities in those areas. The investment plan, and in particular its sizable price tag, drew some skepticism on Wall Street. D.A. Davidson analyst Gil Luria told Reuters that the "bombastic figure is more likely a gesture towards the U.S. administration." IBM's announcement of the initiative comes a few days after it disclosed that DOGE had canceled 15 of its contracts with the U.S. government. According to the company, those agreements amounted to "less than $100 million of backlog over a duration of multiple years." That sum represents a small fraction of IBM's annual revenue, but its shares nevertheless fell more than 6% on the day of the contract cancellations' disclosure. The company's mainframe business, the first focus of the $30-billion-plus research initiative, makes its systems at a facility in Poughkeepsie, New York. The business introduced its newest product earlier this month. The IBM z17 can run more than 450 billion artificial intelligence inference operations per day, 50% more than the company's previous-generation mainframe. The z17 is powered by a custom processor called the Telum II. It has eight cores running at a frequency of 5.5GHz, 40% more cache than IBM's previous mainframe processor and an AI module. Customers can optionally add more compute capacity by attaching a PCIe-based machine learning accelerator, Spyre, that includes 32 cores. The z17 keeps its data in a new iteration of IBM's DS8000 storage system series. The latest version promises less than one second of downtime per year, as well as automated failover in the event of technical issues. A feature called Safeguarded Copies allows customers to keep their information in an immutable form to prevent ransomware from deleting it. IBM's quantum computing unit, the other focus of its new research and development investment, likewise makes regular updates to its hardware portfolio. IBM debuted its latest quantum processor, the Heron R2, last September. The chip features 156 qubits made from superconducting materials. During internal tests, the Heron R2 completed a computing experiment 50 times faster than IBM's previous-generation quantum processor. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," said IBM Chief Executive Officer Arvind Krishna.

IBM is supercharging its quantum computer efforts as part of a major five-year investment in U.S. tech

The $150 billion investment includes more than $30 billion to fund research and development to advance American manufacturing of mainframe and quantum computers. IBM is one of the largest technology employers in the U.S. The company currently has manufacturing facilities in Poughkeepsie, New York. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment, we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," IBM CEO Arvind Krishna said in a statement. According to the company, IBM's advancement of quantum computer systems "will not only help us better understand the fundamentals of how the world works but are projected to transform American competitiveness, jobs, and national security."

IBM to invest $150 billion in US over five years

Technology giant IBM announced plans on Monday to invest $150 billion in the United States over five years, including $30 billion earmarked for research and development to bolster manufacturing of mainframe and quantum computers. Corporate giants, including Apple, Nvidia and Hyundai, have announced major spending plans in the United States since Trump returned to the White House in January, though some of that investment was already in the pipeline.Technology giant IBM announced plans on Monday to invest $150 billion in the United States over five years, including $30 billion earmarked for research and development to bolster manufacturing of mainframe and quantum computers. "Technology doesn't just build the future - it defines it," said IBM chairman and CEO Arvind Krishna in a statement. The investment, which comes as President Donald Trump puts pressure on companies to invest in the United States, aims to cement IBM's position as "the epicenter of the world's most advanced computing and AI capabilities," Krishna added. Corporate giants, including Apple, Nvidia and Hyundai, have announced major spending plans in the United States since Trump returned to the White House in January, though some of that investment was already in the pipeline. Trump earlier this month unveiled an unprecedented wave of tariff hikes in his effort to push US companies to shift manufacturing home. He has since put most of the tariffs on hold, as worries grow about their severe impact on the US economy, though massive levies remain on China. IBM stressed in its statement its "unwavering commitment to the future of American innovation, igniting new economic opportunity in the United States and around the world." The 114-year-old company - which has trailed the dominant players Microsoft, Amazon and Google in recent years - emphasized that it operates the world's largest fleet of quantum computing systems, which is seen as technology's next frontier.

IBM CEO: $150B Investment Ensures IBM 'Remains The Epicenter' Of AI And Innovation

IBM unveils a $150 billion investment in the U.S. to drive manufacturing as the Trump administration pushes for more domestic manufacturing. IBM CEO Arvind Krishna said the tech company will invest a whopping $150 billion over the next five years in the U.S. with the goal of ensuring that his company remains a global leader in IT manufacturing and innovation. "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," said CEO Krishna in a statement. Of the $150 billion investment, more than $30 billion will go towards advancing American manufacturing of mainframe and quantum computers. The news comes during the same month President Donald Trump announced an aggressive reciprocal tariff policy aimed at boosting U.S. manufacturing. The administration later said semiconductors and other tech components and devices would be exempted from the tariffs. [Related: IBM Q1 2025 Earnings: CEO Krishna Maintains Financial Forecast Despite DOGE Cuts, Economic Uncertainty] In April, IBM unveiled its next generation of the company's mainframe, IBM z17, which is powered by its new IBM Telum II processor. IBM's z17 enables businesses to drive innovation including the ability to process 50 percent more AI inference operations per day than z16, the company said in a statement. The new mainframe is built to drive business value across industries with a range of AI use cases such as mitigating loan risk, managing chatbot services, supporting medical image analysis or impeding retail crime. "With z17, we're bringing AI to the core of the enterprise with the software, processing power, and storage to make AI operational quickly," said IBM's Ross Mauri, general manager of IBM Z and LinuxONE, in a statement. "Additionally, organizations can put their vast, untapped stores of enterprise data to work with AI in a secured, cost-effective way." IBM Touts US Mainframe Manufacturing In its $150 billion announcement today, IBM touted its Poughkeepsie, N.Y.-based mainframe manufacturing site, saying over 70 percent of the world's transactions by value run through IBM mainframe manufacturers in America. IBM said it operates the world's largest fleet of quantum computer systems, and will continue to design, build and assemble quantum computers in America. Additionally, IBM's Quantum Network provides access to IBM's quantum systems for nearly 300 of the Fortune 500 companies, and is accessed by over 600,000 active users. IBM's Recent Financial Earnings IBM generated a total of $14.5 billion during its latest quarter, up 2 percent year over year. IBM's infrastructure division, which includes mainframe computers, reported $2.89 billion in revenue, a decrease of 4 percent year over year. The company's software division saw revenue growth of 9 percent year over year to $6.3 billion. Software's annual recurring revenue (ARR) grew to $21.7 billion, up 11 percent year over year.

IBM Commits $30 Billion To R&D In US, Eyes Next-Level Advances In Mainframes And Quantum Computing - IBM (NYSE:IBM)

Today's manic market swings are creating the perfect setup for Matt's next volatility trade. Get his next trade alert for free, right here. International Business Machines Corporation IBM disclosed a $150 billion investment plan in the U.S. over the next five years. The initiative aims to drive economic growth and strengthen its position as a global computing leader. In particular, the company plans to allocate over $30 billion toward research and development, focusing on advancing and expanding its American manufacturing of mainframe and quantum computers. Also Read: IBM's Shares Drop Sharply After Q1 Report: Analysts Say It's Overdone, Revenue Growth To Accelerate Arvind Krishna, IBM chairman, president and CEO said, "We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities." In addition, the company unveiled new agentic and automation features in its managed detection and response services to enhance autonomous security operations and provide predictive threat intelligence for clients. In particular, the company is introducing the Autonomous Threat Operations Machine (ATOM), an agentic AI system designed to autonomously handle threat triage, investigation, and remediation with minimal human input. IBM is also launching the X-Force Predictive Threat Intelligence (PTI) agent for ATOM, which uses industry-specific AI foundation models to deliver predictive insights on potential adversarial activities and reduce the need for manual threat hunting. This month, IBM reported first-quarter earnings of $1.60 per share, which exceeded the analyst consensus estimate of $1.40 and revenue of $14.54 billion, also surpassing the analyst consensus estimate of $ 14.40 billion. Investors can gain exposure to the stock via First Trust NASDAQ Technology Dividend Index Fund TDIV and FT Vest Technology Dividend Target Income ETF TDVI. Price Action: IBM shares are up 0.16% at $232.79 premarket at the last check Monday. Read Next: Consumer Tech News (Apr 21-Apr 25): Microsoft's Copilot Gets a Sleek New Look, Apple Under Fire For 'Influence-Peddling' In US-China Trade & More Photo: Shutterstock IBMInternational Business Machines Corp $233.030.27% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 88.44 Growth 77.17 Quality 38.00 Value 17.62 Price Trend Short Medium Long Overview TDIVFirst Trust NASDAQ Technology Dividend Index Fund $69.12-4.82% TDVIFT Vest Technology Dividend Target Income ETF $21.950.02% Market News and Data brought to you by Benzinga APIs

IBM invests $150B in US to boost quantum computing initiative

The investment includes $30 billion earmarked for research and development to bolster manufacturing of mainframe and quantum computers. IBM announced plans to invest $150 billion in the US over the next five years to strengthen its position as a leader in computing and quantum computing. This investment strategy aims to reinforce IBM's standing in the industry while propelling the US economy forward. "Since our founding 114 years ago, we have focused on American jobs and manufacturing, and with this investment and manufacturing commitment, we will ensure that IBM remains the epicenter of the world's most advanced computing capabilities and artificial intelligence (AI)," said Arvind Krishna, IBM's chairman and CEO. A portion of the investment, over $30 billion, is earmarked for research and development to bolster the manufacturing of mainframe and quantum computers. This dedication to innovation is expected to support IBM's continued leadership in advanced computing technologies while stimulating the US economy, as reported by Benzinga. IBM currently operates the world's largest fleet of quantum computing systems and plans to maintain this leadership by continuing to build and assemble these systems in the United States. The company's ongoing commitment aligns with efforts to cement its status as the epicenter of the world's most advanced computing and AI capabilities. IBM's announcement follows a trend among technology giants like Nvidia and Apple, who have each committed substantial investments in the US. Nvidia's plans to produce up to $500 billion of AI infrastructure in the US over the next four years mirrors similar pledges by Apple, further emphasizing the government's push towards strengthening local manufacturing capabilities. These announcements came in response to US President Donald Trump's push for increased investment in domestic manufacturing, supported by his "reciprocal" tariff policy. In its announcement, IBM expressed its intent to continue designing, building, and assembling quantum computing systems within the US. This direction is in line with the company's history, as IBM's mainframes, essential for handling vast data and critical applications, are manufactured in Poughkeepsie, New York, serving global companies' needs. IBM's advancement of quantum computer systems is anticipated to transform American competitiveness, jobs, and national security. The strategic move underscores the potential of quantum computing technology in redefining industry standards and national infrastructure. IBM's pledge comes at a time when companies are inclined to increase their presence in the US market, aligning with the strategic interests of the government to boost economic growth through technological innovation. The article was written with the assistance of a news analysis system. Sign up for the Business & Innovation Newsletter >>