IBM to Invest $150B in Advanced Tech, $30B in R&D in U.S. Over Next 5 Years

ARMONK, NY—To keep up with the Microsofts and Googles of the world, IBM announced plans on Mon., April 28, to invest $150 billion in America over the next five years to accelerate its role in computing on the world stage. The massive investment includes spending more than $30 billion in research and development to advance and continue IBM’s American manufacturing of mainframe and quantum computers.

“Technology doesn’t just build the future—it defines it,” said Arvind Krishna, IBM chairman, president and chief executive officer. “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.”

While the Armonk, NY-based company did not add specifics on its planned investment or the locations where those capital funds will be spent, the company in its announcement highlighted its Poughkeepsie, NY operations where it manufactures cutting-edge mainframes. More than 70% of the entire world’s transactions by value run through the IBM mainframes that are manufactured in America.

From left, Arvind Krishna, IBM chairman, president and CEO, and President Biden in October 2022 at an event at IBM’s Poughkeepsie, NY plant. IBM announced then that it was planning to spend $20 billion in the Hudson Valley over the coming decade. FILE PHOTO

IBM also operates the world’s largest fleet of quantum computer systems, and will continue to design, build and assemble quantum computers in America. Quantum computing represents one of the biggest technology platform shifts and economic opportunities in decades, and it is expected to solve problems that today’s conventional computers cannot solve.

“Enabling these solutions will not only help us better understand the fundamentals of how the world works but are projected to transform American competitiveness, jobs, and national security,” IBM said in the statement. IBM’s Quantum Network provides access to IBM’s quantum systems for nearly 300 Fortune 500 companies, academic institutions, national laboratories, and startups and is accessed by more than 600,000 active users.

New York State is attracting billions of dollars in high tech investment. For example, Micron is investing $100 billion over the next 20-plus years to construct a semiconductor manufacturing campus in Onondaga County, NY. Construction has begun on Micron’s campus located in the Syracuse suburb of Clay, NY. During a visit to the IBM Poughkeepsie campus in October 2022, President Joe Biden touted the CHIPS and Science Act’s impact on IBM’s recent decision to invest $20 billion across the Hudson Valley region over the next 10 years. IBM stated at the time that its investment will be centered on advancing its R&D and manufacturing of semiconductors, mainframe technology, artificial intelligence and quantum computing.

Last week, IBM reported its first quarter revenues exceeded expectations. IBM posted revenue of $14.5 billion and gross profit margin up 170 basis points or 55.2% higher.

“We exceeded expectations for revenue, profitability and free cash flow in the quarter, led by strength across our software portfolio.” Mr. Krishna said. “There continues to be strong demand for generative AI, and our book of business stands at more than $6 billion inception-to-date, up more than $1 billion in the quarter. We remain bullish on the long-term growth opportunities for technology and the global economy. While the macroeconomic environment is fluid, based on what we know today, we are maintaining our full-year expectations for revenue growth and free cash flow.”

Published: April 29, 2025

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