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IBM's $10 billion bet on what comes after AI

Masters of Scale

Listen on: Spotify | Apple Podcasts | Podlink (45 m)

Topics: AI | Leadership | Science & Research | Technology

IBM CEO Arvind Krishna argues foundation models will become commodities and explains why the company is investing $10 billion in quantum computing.

Foundation models face a commoditisation curve within 24 months as token prices rise and switching costs drop, creating demand for optimised, smaller models.

AI productivity gains require scaling beyond experimentation—IBM achieved $5 billion in savings by year four after initially spending more than it saved.

Quantum computing progressed from simulating 5-atom molecules to 12,000 atoms in months, approaching protein-level problems that could transform drug discovery.

"The most risky route is taking zero risk." - Arvind Krishna