IBM Pledges $150 Billion Investment in the U.S. Tech Sector

IBM has announced a significant commitment to invest $150 billion in the United States over the next five years, a move that aligns with similar promises made by other tech giants. This investment is set to enhance various aspects of the technology landscape in the country.

While IBM has not detailed the specific uses for the majority of this funding, it has indicated that over $30 billion will be directed toward research and development focused on mainframe systems and quantum computing. This translates to an annual investment of at least $6 billion dedicated to these advanced technologies.

In 2024, IBM's expenditure on research, development, and engineering reached approximately $7.5 billion, with $6.8 billion allocated in 2023. The company has clarified that these costs primarily relate to scientific research and the application of scientific knowledge to develop new and improved products and services.

IBM operates globally, with key research facilities located in the United States, including the Thomas J. Watson Research Center and two additional research institutions. Consequently, it is anticipated that a substantial portion of the research and development spending will occur within the U.S. The increased investment in quantum computing appears especially logical, given the technology's potential for economic viability in the near future.

This announcement follows a trend among major tech companies seeking to curry favor with the U.S. government through large investment pledges. For instance, Apple has committed to investing $500 billion in the U.S. over the next four years, a figure that includes routine operational expenses such as chip production at TSMC's new semiconductor facility in Arizona. Other investments, including the establishment of a new manufacturing plant, were already in the planning stages.

Nvidia has also revealed plans to manufacture AI servers worth $500 billion in the U.S. over the next four years, with partners Foxconn and Wistron announcing new U.S. facilities in 2024. This announcement led to some confusion, with former U.S. President Donald Trump mistakenly interpreting it as a commitment to invest $500 billion.