International Business Machines Corp. announced Monday it will invest $150 billion in the United States over the next five years, including more than $30 billion specifically earmarked for boosting domestic manufacturing of quantum computers and mainframe systems.
The move comes as major U.S. technology companies, facing rising trade tensions and potential new tariffs under President Donald Trump's policies, scramble to expand domestic production. In recent weeks, both Nvidia and Apple pledged up to $500 billion each toward U.S.-based manufacturing and infrastructure projects over the next four years.
"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," IBM Chief Executive Arvind Krishna said in a statement.
The company said the investment will support its leadership in quantum computing, a sector many experts believe could transform industries from pharmaceuticals to financial services. IBM operates what it describes as the world's largest fleet of quantum computer systems and has committed to keeping production and assembly of these systems inside the United States.
IBM's announcement closely follows President Trump's unveiling of a sweeping "reciprocal" tariff strategy aimed at strengthening American manufacturing. As of late April, Trump exempted key tech components - including chips, smartphones, and computers - from new tariffs, but warned that further trade penalties remain possible if companies fail to expand U.S. production.
IBM's broader investment announcement also arrives amid recent financial turbulence. The company reported better-than-expected first-quarter results last week, posting $14.54 billion in revenue, ahead of analysts' estimates of $14.4 billion. Net income fell to $1.06 billion, or $1.12 per share, compared with $1.61 billion, or $1.72 per share, a year earlier.
Revenue from IBM's infrastructure division, which includes mainframe computers, reached $2.89 billion for the quarter, beating expectations of $2.76 billion. Earlier this month, IBM unveiled its new z17 AI mainframe, signaling a continued push into AI-driven enterprise technology.
While IBM's spending pledge represents a major financial commitment, analysts cautioned that part of the figure may be symbolic. D.A. Davidson analyst Gil Luria said, "While we believe 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."
