IBM rakes in $7.5B from gen AI offerings

IBM is seeing growth thanks to the wave of AI adoption across all major industries. AI remains a powerful driver of change for IBM and its clients, Chief Executive Arvind Krishna said during the company’s second-quarter earnings call July 23. IBM is transforming enterprise operations by embedding AI into more than 70 workflows and providing AI solutions to clients via hybrid cloud environments. [caption id="attachment_57363611" align="alignright" width="300"] (Courtesy/Bloomberg)[/caption] “We are seeing strong demand for our AI agents and assistants,” Krishna said. “Our gen AI book of business now stands at over $7.5 billion, inception to date, with momentum accelerating quarter over quarter.” The Armonk, N.Y.-based company has built more than 150 AI agents across HR, sales, procurement and IT processes. “As agentic AI matures, we believe it will power over a billion new applications and a massive expansion in code, driving a critical need for automation,” Krishna said, adding that IBM’s continuous investment in AI agents and platforms, including watsonx, position it for growth. THE BIG PICTURE: IBM is also exploring M&A opportunities, Krishna said. IBM acquired data management company DataStax on May 28 for an undisclosed amount to complement its AI initiatives, he said. “People need to get their data ready for AI,” Krishna said, adding that IBM can provide end-to-end services to companies looking to deploy gen AI. IBM is also integrating cloud services provider HashiCorp, which it acquired on April 25 for $6.4 billion. “Given the strength of our portfolio, investment in innovation and contribution from acquisitions, we continue to expect software revenue growth approaching double digits for the full year,” Krishna said. The company reported software revenue of $7.4 billion, up 10% year over year. BY THE NUMBERS: In Q2, IBM reported: Revenue of $17 billion, up 8% YoY; Consulting revenue of $5.3 billion, up 3% YoY; Infrastructure revenue of $4.1 billion, up 14% YoY; and Gross profit of $10 billion, up 11.5% YoY. NOTEWORTHY: IBM is developing its quantum infrastructure for future growth, Krishna said. “In quantum, we achieved a major milestone with the deployment of IBM quantum computer system in Japan in partnership with Raikin ,” Krishan said. “This marks the first installation outside the United States and underscores our commitment to global leadership in quantum computing.” Major FIs including JPMorgan and HSBC are also developing quantum computing capabilities as they eye the next frontier of tech. FUTURE LOOK: IBM is focusing its growth on emerging markets like Japan, South Asia and Middle East, Krishna said. “Japan is reindustrializing. ... That implies that Japan is digitizing at rates we have not seen,” Krishna said. IBM’s South Asia economic market is expected to grow at a 10% annualized rate, Krishna said, adding that Middle East countries “are booming in terms of plowing all of their profits back into their economies and they're trying to create now diversified economies of which technology forms a strong piece.”

IBM rakes in $7.5B from gen AI offerings

Tech giant acquired data management company DataStax to bolster AI offerings

New high-friction savings account designed to fight fraud

Investment in auto fintechs totals $1.9B through June

Related Posts

C-Suite alignment is ‘most important piece’ of AI puzzle

Trump rejects push for international pact to manage risks of AI

Personetics weighs task before choosing what AI model to use

Investment in auto fintechs totals $1.9B through June

EMERGING FINTECH DIRECTORY

FinAi Podcast

SPONSORED

Build an Antifragile Strategy to Outperform the Market

How AI and Product Experts Turn Fuzzy Requirements Into Focused Dev-ready Roadmaps

Is Your Technology Supplier There for You?

Connect

Welcome Back!

Retrieve your password

Continue Reading with FinAi News Premium - Less than $2/Day

IBM rakes in $7.5B from gen AI offerings

Tech giant acquired data management company DataStax to bolster AI offerings

New high-friction savings account designed to fight fraud

Investment in auto fintechs totals $1.9B through June

Related Posts

FinAi Podcast

Connect

Welcome Back!

Retrieve your password

Unlock This Article

Continue Reading with FinAi News Premium - Less than $2/Day