IBM is deepening its quantum computing ambitions with a $10 billion investment to accelerate research, manufacturing, and commercial deployment.
IBM said on Thursday it plans to invest more than $10 billion in quantum computing over five years as it aims to build by 2029 the first large-scale quantum computer capable of running complex calculations reliably and without errors.
The announcement follows a Trump administration decision last week to take $2 billion in equity stakes in nine quantum computing companies, with IBM set to receive half of the funding for a new venture called Anderon, which would become the first dedicated quantum chip manufacturing facility in the U.S.
The move, part of the administration’s push to secure U.S. leadership in emerging technology and counter China, underscores the growing prominence of quantum computing.
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Recent technological breakthroughs have fueled investor interest in its potential to accelerate tasks ranging from drug discovery to financial modeling and cryptography.
But major technical hurdles remain, including high error rates that limit practical use. Alphabet CEO Sundar Pichai said last year that “practically useful” quantum computers were five to 10 years away.
IBM said its new investment would span research and development, capital expenditure, ecosystem partnerships, manufacturing scaling, and mergers and acquisitions.
The company is making a $1 billion contribution to Anderon, which will offer its chipmaking technology to outside customers and was already in talks with potential clients.
It has also pledged to transfer intellectual property, assets, and its workforce to Anderon and to bring in additional investors as the new company grows.
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Shares of IBM rose 1.7% in premarket trading.
IBM said on Thursday it has deployed more than 90 quantum systems to date, more than all other industry players combined.
Over 325 Fortune 500 companies, startups, universities, and government agencies use its quantum systems to tackle challenges in chemistry, biology, and materials science, according to a filing with the Securities and Exchange Commission.
