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- IBM CEO Arvind Krishna said the company’s investments in quantum computing should begin to have “a measurable impact” on revenue and earnings by 2028 or 2029.
- “By the end of the 2030s, we are now pretty convinced this is a trillion dollars of value,” he said.
IBM CEO Arvind Krishna said Thursday investors won’t have to wait much longer for quantum computing to become a meaningful business for the technology company known for its mainframes and enterprise software.
“I think that in 2028 or 2029, you’ll see it have a measurable impact on our top line and bottom line,” Krishna said on CNBC’s “Mad Money.” “By the end of the 2030s, we are now pretty convinced this is a trillion dollars of value.”
On Thursday, IBM and startup Algorithmiq unveiled new research demonstrating what the companies described as quantum advantage, showing a quantum computer could solve certain computational problems more efficiently than today’s leading classical computers while also verifying the results.
Krishna said IBM’s quantum computer uncovered behaviors in materials that researchers had been unable to observe with conventional computing. He said those insights could eventually lead to better batteries, more advanced materials, improved fusion energy and smarter medicines.
“A quantum computer can do things better, faster, cheaper, in a way that normal classical computers cannot do at this time,” Krishna said.
While skeptics argue quantum computing remains years away from practical commercialization because of challenges including high error rates, hardware complexity and scalability, Krishna said IBM is already seeing meaningful progress toward real-world applications.
In May, the company announced plans to develop a standalone quantum chip foundry backed by a $1 billion commitment from the U.S. Department of Commerce through the CHIPS incentive, along with a matching $1 billion investment from IBM. Rivals like Alphabet and Rigetti Computing are also racing to commercialize quantum computing.
Krishna also sought to reassure investors after IBM’s earnings update earlier this month sent the stock to its worst single-day decline on record. Shares of IBM dropped 25% on July 14 in response to the announcement and have since recovered just 2%. In the earnings announcement, the company said some customers had delayed capital spending projects, raising concerns about near-term demand and whether AI posed long-term risks to its software business.
Krishna said those deals were being postponed — not canceled.
“Here’s the good news: about 40% of them have already closed in three to four weeks. … That’s a good signal that it is a deferral, not a destruction.”
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