The record
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- IBM CEO Arvind Krishna has publicly defended the company's quantum computing timeline, telling CNBC that quantum should have a measurable impact on IBM's revenue and profit by 2028 or 2029 and could represent a trillion dollars of value by the end of the 2030s.
- His comments come after IBM's July earnings update triggered a 25% single-day stock drop, its worst on record, wiping out roughly $70 billion in market value.
- Krishna attributed the weak results to customers delaying large deals as they reassess cybersecurity spending amid concerns over advanced AI models such as Anthropic's Mythos, saying about 40% of the deferred deals have already closed.
- IBM is also advancing quantum hardware, including a planned standalone quantum chip foundry backed by $1 billion from the U.S.
- Commerce Department under the CHIPS Act and a matching $1 billion from IBM.
What to watch next
- Whether the remaining deferred customer deals close in the coming weeks, as Krishna indicated 40% already have
- IBM's full second-quarter results and whether the cybersecurity-spending reassessment continues to weigh on revenue
- Progress on IBM's planned quantum chip foundry and the claimed demonstration of quantum advantage with startup Algorithmiq
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Named United States · Ibm · Algorithmiq · Alphabet · Anthropic · Arvind Krishna · CNBC · Mythos · Rigetti Computing · U.S. Commerce Department · Wall Street
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