IBM pledges $150 billion to boost U.S. tech growth, computer manufacturing
'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,' IBM CEO Arvind Krishna said in a release.
The company's announcement comes weeks after President Donald Trump unveiled a far-reaching and aggressive 'reciprocal' tariff policy to boost manufacturing in the U.S. As of late April, Trump has exempted chips, as well as smartphones, computers, and other tech devices and components, from the tariffs.
IBM said its investment will help accelerate America's role as a global leader in computing and fuel the economy. The company said it operates the 'world's largest fleet of quantum computer systems,' and will continue to build and assemble them in the U.S., according to the release.
IBM competitor Nvidia, the chipmaker that has been the primary benefactor of the artificial intelligence boom, announced a similar push earlier this month to produce its NVIDIA AI supercomputers entirely in the U.S.
Nvidia plans to produce up to $500 billion of AI infrastructure in the U.S. via its manufacturing partnerships over the next four years.
Last week, IBM reported better-than-expected first-quarter results. The company said it generated $14.54 billion in revenue for the period, above the $14.4 billion expected by analysts. IBM's net income narrowed to $1.06 billion, or $1.12 per share, from $1.61 billion, or $1.72 per share, in the same quarter a year ago.
IBM's infrastructure division, which includes mainframe computers, posted $2.89 billion in revenue for the quarter, beating expectations of $2.76 billion.
The company announced a new z17 AI mainframe earlier this month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
an hour ago
- Daily Mail
State leader's bold new plan to entice Donald Trump to Australia
US President Donald Trump will join a meeting of Australia's most important allies in Brisbane next year if the Queensland Premier can convince Anthony Albanese. David Crisafulli is campaigning for his state to host the next leaders summit of the Quad, the diplomatic partnership between Australia, India, Japan, and the US. 'I'm leading a campaign to get the Quad to Queensland,' he told an American Chamber of Commerce in Australia event in Brisbane on Friday. 'Australia is due to host it (next year), and I couldn't think of a more appropriate place than Queensland to have it.' He said he had floated the idea with the Prime Minister as recently as Thursday and he had been 'pretty persistent'. Crisafulli said he plans to travel to Japan and India along with representatives of Queensland universities in coming weeks to lobby for the opportunity. The last time global leaders descended on Brisbane was 2014 when it hosted the G20 summit, with guests including then US President Barack Obama and Russian leader Vladimir Putin. Crisafulli said Queensland did not get the 'buzz and recognition' some had expected from the summit, claiming its high-calibre invites had overshadowed the host city. He said he couldn't think of a 'more appropriate place' to host the Quad meeting and promoted commercial ties between Queensland and the United States. Crisafulli said Trump-era 'uncertainties' did not spell 'doom and gloom' but were a time of opportunity for the major trading partners. Australia is North America's biggest supplier of beef, with Queensland being responsible for roughly half of Australia's production of beef. He said demand for Queensland's resources will help offset impacts from the end of the US' country-specific tariff pause on July 9. 'It really plays into our strengths, what's happening on the trade front,' he said. 'Almost half of our exports at the moment are beef, and I see that as a good opportunity for a couple of reasons. 'First, the demand for Aussie beef isn't going anywhere in a hurry, and it will be a bedrock of great trade relationships for many years to come. 'But I also look at the new opportunities, and particularly with a lens of those tariffs over it, and how great that could be for Queensland. 'Start with critical minerals. Imagine an exemption for our critical minerals at a time when others are competing to get their products into one of our major markets.' Washington hosted this week's Quad meeting, where Australia sought to brand itself as an alternative to Beijing in the supply and processing of critical minerals. A meeting of foreign ministers from each member state agreed on a 'Quad Critical Minerals Initiative' designed to shore up global supply. The joint statement cited concerns over the 'abrupt constriction and future reliability of key supply chains, specifically for critical minerals'. 'Reliance on any one country for processing and refining critical minerals and derivative goods production exposes our industries to economic coercion, price manipulation, and supply chain disruptions, which further harms our economic and national security,' the statement said.
Reuters
2 hours ago
- Reuters
Trump says tariff letters to 12 countries signed, going out Monday
July 4 (Reuters) - U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. Trump, speaking to reporters aboard Air Force One as he traveled to New Jersey, declined to name the countries involved, saying that would be made public on Monday. Trump had earlier on Thursday told reporters that he expected a first batch of letters to go out on Friday, a national holiday in the United States, though the date has now shifted. In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. However, all but the 10% base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals. That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1. "I signed some letters and they'll go out on Monday, probably twelve," Trump said, when asked about his plans on the tariff front. "Different amounts of money, different amounts of tariffs." Trump and his top aides initially said they would launch negotiations with scores of countries on tariff rates, but the U.S. president has soured on that process after repeated setbacks with major trading partners, including Japan and the European Union. He touched on that briefly late on Friday, telling reporters: "The letters are better ... much easier to send a letter." He did not address his prediction that some broader trade agreements could be reached before the July 9 deadline. The shift in the White House's strategy reflects the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports, and especially on an accelerated timeline. Most past trade agreements have taken years of negotiations to complete. The only trade agreements reached to date are with Britain, which reached a deal in May to keep a 10% rate and won preferential treatment for some sectors including autos and aircraft engines, and with Vietnam, cutting tariffs on many Vietnamese goods to 20% from his previously threatened 46%. Many U.S. products would be allowed to enter Vietnam duty free. A deal expected with India has failed to materialize, and EU diplomats on Friday said they have failed to achieve a breakthrough in trade negotiations with the Trump administration, and may now seek to extend the status quo to avoid tariff hikes.
Reuters
2 hours ago
- Reuters
Trump says 10 to 12 countries will get letters on tariff rate on Friday
WASHINGTON, July 4 (Reuters) - U.S. President Donald Trump said on Friday his administration later in the day will begin sending letters to 10 to 12 countries informing them of the tariff rate their products will face in the United States.
