IBM's Stock Surges on AI Partnership Hopes
IBM's stock has doubled in the last two years, but its AI progress has been a mixed bag. Despite early innovations like Deep Blue and Watson, the tech giant struggled to monetize AI technologies and fell behind internet-based competitors. However, a recent partnership with Anthropic has sparked renewed optimism.
IBM's generative AI order book surged to $7.5 billion in the second quarter, contributing to its overall growth. The company's stock has seen significant gains under CEO Arvind Krishna, who has focused on investments in hybrid cloud and AI. However, analysts note that these gains are largely driven by expectations rather than concrete results.
The partnership with Anthropic, the AI startup behind the Claude chatbot, is seen as a game-changer. IBM will integrate Claude into its software portfolio, promising productivity gains and improved security in software development. This deal helps IBM stay updated with the latest AI advances and enhances its reputation with customers. Anthropic's founders, including seven former OpenAI employees, bring valuable expertise to the table.
IBM's stock may no longer be cheap, but the Anthropic partnership could accelerate the company's growth in the AI sector. While IBM has had its share of AI missteps, this collaboration signals a commitment to staying competitive in the rapidly evolving AI landscape.
