Two separate reports out of the Wall Street Journal detail the renaissance IBM is currently experiencing under CEO Arvind Krishna.

The first report details investments related to AI (natch). The second story reports on a massive investment in (wait for it) mainframe and quantum computing systems. Mainframes in 2025? Indeed.

First thing’s first: Big Blue has amassed $6 billion in generative AI bookings, mostly through consulting services. Quite the remarkable turnaround story for IBM, whose software division has found new life after shedding its IT outsourcing unit Kyndryl in 2021. For a company once considered a relic of computing’s past, this pivot represents a meaningful shot at relevance in our current AI-driven moment.

However, IBM’s track record with emerging technologies should give us pause. Despite pioneering achievements like Deep Blue and Watson, the company has consistently stumbled when translating innovation into market dominance. The cloud computing revolution offers a sobering example, where IBM watched as AWS and Microsoft Azure captured the market it could have led.

Speaking of cloud computing, don’t count IBM out just yet: they made quite the bold move in another area of investment. The company announced a staggering $150 billion investment in the US over the next five years, with over $30 billion earmarked specifically for R&D in mainframe and quantum computing systems. Cloud computing gets all the glory, true. But the backbone of global finance, healthcare, and government operations still runs on these powerhouse mainframes. IBM’s z-Series mainframes process 90% of all credit card transactions globally and handle core operations for 92 of the world’s top 100 banks.

And in the quantum computing realm, let’s talk about those qubits. The $30+ billion earmarked for quantum R&D is pretty impressive and potentially industry-defining. While Google, Microsoft, and others have made significant quantum computing advancements, IBM’s financial commitment here dwarfs previous investments in the space.

This isn’t just about computing power, it’s about establishing leadership in what will likely become the most transformative technology of our lifetime (including AI). When practical quantum computing arrives at scale, everything changes: drug discovery, materials science, cryptography, AI training, climate modeling, you name it. All of them revolutionized.

Krishna is breathing new life into IBM and recognizing AI’s transformative potential. The company’s stock is up, investors are taking notice, and there’s genuine excitement about IBM for the first time in years. For longtime IBM watchers, this feels like a critical inflection point. It might either be the beginning of a true renaissance or just another false start.

Sources: www.wsj.com/tech/ai/i… www.wsj.com/finance/i…