- IBM announced plans to invest more than $10 billion in quantum computing over the next five years.
- This move aims to build the first large-scale, fault-tolerant quantum computer capable of performing complex calculations reliably by 2029.
- Shares of IBM rose 1.7% in premarket trading following the announcemen
International Business Machines (IBM), on Thursday, announced plans to invest more than $10 billion in quantum computing over the next five years. This move aims to build the first large-scale, fault-tolerant quantum computer capable of performing complex calculations reliably by 2029, Reuters reported.
The investment will cover research and development, capital expenditure, manufacturing expansion, ecosystem partnerships, and mergers and acquisitions, IBM said.
The announcement comes shortly after the Trump administration decided to take $2 billion in equity stakes across nine quantum computing companies as part of a broader effort to strengthen U.S. leadership in the emerging technology and counter China's advances in the sector.
Under the initiative, IBM is set to receive nearly half of the funding for a new venture named Anderon, which is expected to become the first dedicated quantum chip manufacturing facility in the United States.
IBM said it would contribute $1 billion to Anderon and provide intellectual property, assets and workforce support to the new company. The tech giant added that Anderon would also offer its chipmaking capabilities to external customers and had already begun discussions with potential clients.
Quantum computing has attracted growing investor attention in recent years due to its potential to transform industries ranging from drug discovery and financial modeling to cybersecurity and cryptography.
However, significant technical challenges remain, particularly around high error rates that limit practical use. Alphabet CEO Sundar Pichai said last year that practically useful quantum computers were still five to 10 years away.
IBM said it has deployed more than 90 quantum systems globally so far, which it claims is more than all other industry players combined.
According to the company's filing with the U.S. Securities and Exchange Commission, more than 325 Fortune 500 companies, startups, universities and government agencies are currently using IBM's quantum systems to tackle challenges in chemistry, biology and materials science.
Shares of IBM rose 1.7% in premarket trading following the announcement.
