IBM commits $150 billion in US over next 5 years

IBM announced a sweeping $150 billion investment plan in the United States over the next five years, a bold move aimed at strengthening American leadership in advanced computing, manufacturing, and artificial intelligence.

As part of the commitment, IBM will allocate over $30 billion specifically to expand domestic manufacturing of its mainframe and quantum computers. This initiative reaffirms the company’s historic ties to U.S. innovation and job creation, a legacy dating back more than a century.

“We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world’s most advanced computing and AI capabilities,” said IBM CEO Arvind Krishna in a statement.

The announcement comes amid major shifts in U.S. trade policy. President Donald Trump recently introduced an aggressive "reciprocal" tariff strategy aimed at revitalizing American manufacturing. Notably, the administration has temporarily exempted chips, smartphones, computers, and other key tech products from the new tariffs — a move that clears the way for tech giants like IBM to invest without immediate cost burdens.

IBM said the new funding will not only boost American leadership in computing but also energize the broader U.S. economy. The company already operates the world’s largest fleet of quantum computer systems and emphasized its commitment to continue building and assembling these groundbreaking machines on U.S. soil.

This investment aligns with broader industry trends. Earlier this month, Nvidia — a chief competitor in the AI sector — revealed its own plan to manufacture up to $500 billion worth of AI supercomputers in the United States over the next four years through its domestic partnerships.

IBM’s announcement follows a strong financial performance in the first quarter of 2025. The company reported $14.54 billion in revenue, exceeding Wall Street expectations of $14.4 billion. IBM’s infrastructure division, which houses its mainframe business, contributed $2.89 billion to that total, beating analyst projections of $2.76 billion.

However, IBM's net income declined year-over-year, narrowing to $1.06 billion, or $1.12 per share, compared to $1.61 billion, or $1.72 per share, during the same period in 2024.

Earlier this month, IBM also unveiled its latest innovation: the z17 AI mainframe, designed to blend traditional enterprise computing with cutting-edge artificial intelligence capabilities. The new system underscores IBM’s commitment to maintaining technological leadership in the evolving AI-driven economy.

As IBM deepens its investment in America’s future, the company is positioning itself not only as a legacy brand but as a central player in the next era of advanced technology manufacturing.