IBM Makes A Surprise! Big Investment, Ready To Compete With Google And Nvidia?

IBM massive investments in quantum computers (photo: x @wealthwagoninc)

JAKARTA - IBM will invest $150 billion in the United States, including for quantum computer production facilities, over the next five years. This move makes IBM the latest American technology company to support Donald Trump's administration's push for local manufacturing.

The company's announcement on Monday, April 28 follows a similar promise from tech giants such as Nvidia and Apple, both of which say they will spend about $500 billion each in the country over the next four years.

Analysts see this spending commitment as an approach to US President Donald Trump, whose rates threaten to disrupt supply chains and increase costs for the tech industry.

IBM, which is also the government's main contractor, said that more than 30 billion US dollars out of total investment would be used to expand the manufacturing of quantum computers and everything in the US systems used to deal with large data and critical applications.

The company operates one of the largest fleets of quantum computing systems in the world, which promises performance thousands of times more powerful than traditional computers.

"While we believe IBM will continue to invest in developing quantum technology, this fantastic figure is likely a sign to the US administration," said DA Davidson analyst Gil Luria, noting that big tech companies use investment pledges as a shield against trade conflicts.

The latest breakthrough in quantum computing, including the new generation of chips announced by Google in December, has increased interest in the sector. However, executives are still divided about when this technology will have real-world applications.

Google aims to release commercial apps in five years, while Nvidia CEO Jensen Huang expects 20 years of waiting for practical use.

IBM said last week that its 15 government contracts were suspended due to cost cuts by the Trump administration, a setback that covered an optimistic June quarter revenue forecast and caused its shares to drop.