IBM bets $500M on business-focused AI startups

IBM announced at present that it plans to speculate $500 million in generative AI startups catering to enterprise prospects, signaling the expertise big’s entrance into the AI funding race.

Generative AI, which may generate authentic textual content, photos, audio, and extra, has seen fast developments just lately from corporations like OpenAI and Anthropic. IBM’s funding goals to faucet into this burgeoning subject.

“With the launch of the IBM Enterprise AI Enterprise Fund, we’re opening one other channel to harness the big potential of the AI revolution into tangible, optimistic outcomes for IBM and the businesses we spend money on,” mentioned Rob Thomas, IBM’s senior vp of software program and chief industrial officer, in an interview with Axios.

Thomas said the $500 million funding underscores IBM’s message to startups that it isn’t the identical firm as in years previous. IBM plans to speculate throughout all startup levels with out setting targets for the variety of offers or timelines.

IBM has already participated in funding rounds for AI startups Hugging Face and HiddenLayer.

The corporate is especially serious about startups centered on trade verticals like healthcare or particular enterprise processes, so long as they don’t compete straight with IBM’s choices.

Thomas mentioned IBM has heard from shoppers this yr that many have experimented with AI however haven’t seen a lot return on funding but. He expects extra startups will shift to serve enterprise shoppers as they search sustainable fashions. Moreover, Thomas believes corporations outdoors the U.S. might lead this AI wave, although IBM plans to search for investments in every single place.

The $500 million funding signifies IBM’s embracing AI’s potential to remodel companies. With tech giants like Microsoft and Meta additionally dedicating giant sums to AI, the sector is attracting intense curiosity and funding that might speed up improvements. IBM goals to be on the forefront of this AI revolution.

Featured Picture Credit score: Lukas Kosc; Pexels; Thanks!

Radek Zielinski

Radek Zielinski is an skilled expertise and monetary journalist with a ardour for cybersecurity and futurology.

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