IBM plans $150 billion in US investment over next five years

Date:
Tue, 29 Apr 2025 12:02:00 +0000

Description:
IBM will invest $150 billion into the US, including a $30 billion sum
dedicated to quantum computing and mainframe manufacturing.

FULL STORY

IBM has confirmed plans to invest $150 billion into the US over the next five years (via Reuters ), including over $30 billion dedicated to quantum
computer and mainframe manufacturing expansion.

The news comes just days after the company announced its first-quarter financial results, posting a 1% year-over-year increase in revenue to $14.5 billion.

More broadly, it's a trend we're seeing across the tech industry, with US-imposed tariffs drawing more companies to invest in the US Apple and
Nvidia have both already promised to invest $500 billion each into the US.

IBM is the latest to announce US investments

The multibillion-dollar investments are all seen as efforts to align with President Trump's push for local manufacturing amid rising tariffs.
Relocating to, or expanding within America is also a direct result of the
hefty tariffs imposed on certain other nations Lenovo has already confirmed plans to build a PC and server plant in Saudi Arabia, with its 10% tariff acting as an attraction over the US's 245% rate on China.

IBM's $30 billion fund for quantum computing is noteworthy, with the
technology gaining attention after recent breakthroughs like Google's new
chip, leading the company to target commercialization in the next five years much more optimistic than Nvidia's 20-year expectation for quantum's
practical applications.

Last week in its earnings report, IBM noted a 2% drop in consulting revenue. The company confirmed that it had lost 15 government contracts as part of the Trump administration's cost-cutting efforts, driven by Elon Musk's DOGE.

IBM CEO Arvind Krishna commented: "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."

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Link to news story: https://www.techradar.com/pro/ibm-plans-usd150-billion-in-us-investment-over-n ext-five-years

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