IBM introduced as we speak that it plans to speculate $500 million in generative AI startups catering to enterprise prospects, signaling the know-how big’s entrance into the AI funding race.
Generative AI, which may generate authentic textual content, pictures, audio, and extra, has seen speedy developments not too long ago from firms 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 large potential of the AI revolution into tangible, optimistic outcomes for IBM and the businesses we spend money on,” mentioned Rob Thomas, IBM’s senior vice chairman of software program and chief industrial officer, in an interview with Axios.
Thomas mentioned the $500 million funding underscores IBM’s message to startups that it’s not 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 business verticals like healthcare or particular enterprise processes, so long as they don’t compete immediately 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 firms outdoors the U.S. could lead this AI wave, although IBM plans to search for investments all over the place.
The $500 million funding signifies IBM’s embracing AI’s potential to remodel companies. With tech giants like Microsoft and Meta additionally dedicating massive sums to AI, the sector is attracting intense curiosity and funding that would speed up improvements. IBM goals to be on the forefront of this AI revolution.
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