IBM CEO Krishna on Quantum Advantage, Profit Strategy

Summary

IBM CEO Arvind Krishna told Romaine Bostick at the Mizuho Technology Conference that IBM is on track to achieve quantum advantage by mid-2026, with simulations already scaling from 5 to over 12,000 atoms. He highlighted government backing through a $1 billion quantum chip foundry and expressed confidence that the US leads China in quantum. Krishna also explained how AI is being embedded into IBM's operating model to drive efficiency and M&A synergies, and he predicted that quantum and AI will deliver significant revenue and margin acceleration for IBM within 2-3 years.

• IBM CEO confirms quantum advantage target by mid-2026 and cites rapid progress in molecule simulation.
• Government to invest $1 billion in an IBM-led quantum chip foundry, open to approved US entities.
• Krishna sees applications in materials, EV batteries, small-molecule drugs, weather modeling, and aerodynamics.
• He claims the US leads China in quantum by a few years, driven by economic and national security imperatives.
• AI is delivering concrete ROI at IBM by cutting M&A integration costs and tripling entry-level hiring.
• Krishna likens quantum and AI to GPUs in 2015-2016 and forecasts substantial revenue and margin growth for IBM over the next 2-3 years.