IBM will invest $150 billion in the U.S. over the next five years. This investment will include facilities for quantum computer production. IBM is the latest American technology company to back the Trump administration’s push for local manufacturing.
Nvidia and Apple have made similar pledges. Both companies said they would spend about $500 billion each in the country over the next four years.
Several analysts see the spending commitments as overtures to U.S. President Donald Trump. His tariffs threaten to roil supply chains and raise costs for the technology industry.
IBM, a significant government contractor, will use more than $30 billion of the total investment to expand its U.S. manufacturing of quantum computers and mainframes. These systems are used for handling vast data and critical applications.
The company operates one of the world’s largest fleet of quantum computing systems. These systems promise to offer performance thousands of times more powerful than traditional computers.
D.A. Davidson analyst Gil Luria said, “While we believe IBM will continue to invest in the emerging area of quantum technology, the bombastic figure is more likely a gesture towards the U.S. administration.” He also noted that Big Tech was using the investment pledges as a shield against trade conflicts.
Recent breakthroughs in quantum computing have driven up interest in the sector. Alphabet’s Google announced a new generation of chips in December. However, executives remain divided on when the technology will have real-world applications.
Google aims to release commercial applications in five years. Nvidia’s CEO Jensen Huang predicts a 20-year wait for practical uses.
The Trump administration’s cost-cutting drive shelved 15 of IBM’s government contracts last week. This setback eclipsed its upbeat June-quarter revenue forecast and sent its shares lower.
The company had cash and cash equivalents of $14.8 billion as of December 31. It spent $1.13 billion on capital expenditure last year, while total expenses were $29.75 billion.
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