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IBM to invest $150 billion in US over next five years to aid quantum push
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IBM to invest $150 billion in US over next five years to aid quantum push
May 25, 2025 8:06 PM

April 28 (Reuters) - IBM ( IBM ) will invest $150

billion in the U.S., including on facilities for quantum

computer production, over the next five years, the latest

American technology company to back the Trump administration's

push for local manufacturing.

The company's announcement on Monday follows similar pledges

by tech giants such as Nvidia ( NVDA ) and Apple ( AAPL ), both

of which have said they would spend about $500 billion each in

the country over the next four years.

Several analysts see the spending commitments as overtures

to U.S. President Donald Trump, whose tariffs threaten to roil

supply chains and raise costs for the technology industry.

IBM ( IBM ), also a significant government contractor, said more

than $30 billion of the total investment would be used to expand

its U.S. manufacturing of quantum computers and mainframes -

systems used for handling vast data and critical applications.

The company operates one of the world's largest fleet of

quantum computing systems, which promise to offer performance

thousands of times more powerful than traditional computers.

"While we believe IBM ( IBM ) will continue to invest in the

emerging area of quantum technology, the bombastic figure is

more likely a gesture towards the U.S. administration," said

D.A. Davidson analyst Gil Luria, noting that Big Tech was using

the investment pledges as a shield against trade conflicts.

Recent breakthroughs in quantum computing, including a new

generation of chips announced by Alphabet's Google in

December, have driven up interest in the sector, though

executives remain divided on when the technology will have

real-world applications.

Google aims to release commercial applications in five

years, while Nvidia's ( NVDA ) CEO Jensen Huang predicts a 20-year wait

for practical uses.

IBM ( IBM ) said last week 15 of its government contracts were

shelved under a cost-cutting drive by the Trump administration,

a setback that eclipsed its upbeat June-quarter revenue forecast

and sent its shares lower.

The company had cash and cash equivalents of $14.8 billion

as of December 31. It spent $1.13 billion on capital expenditure

last year, while total expenses were $29.75 billion.

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