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IBM is the latest to announce major US investments, totaling $150 billion$30 billion will be earmarked for quantum computingIBM has lost 15 US government contractsIBM 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 investmentsThe 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."You might also likePure coincidence, surely not? Huawei launches its fastest AI chip ever as US bans export of popular China-only Nvidia H20Access the most powerful chips with the best cloud computing servicesWe've listed the best job sites and best recruitment platforms.
