IBM Launches a $500 Million AI Investment Fund for Enterprises

IBM has launched a $500 million enterprise AI venture fund aimed at investing in various AI companies, spanning early-stage to hyper-growth startups. The focus of the fund is on advancing generative AI technology and research for the enterprise. Utilizing a unique model and strategy, the IBM Enterprise AI Venture Fund plans to invest in AI leaders contributing to global business advancements. Led by a specialized team at IBM with extensive experience in investment and enterprise AI, the fund aims to foster partnerships with startups, providing operational expertise in product development, engineering, and go-to-market strategies.

IBM, a longstanding player in delivering enterprise AI solutions worldwide, is capitalizing on the latest developments in generative AI through its AI and data platform, watsonx. The venture fund is expected to expand IBM’s AI ecosystem, establishing partnerships with companies leveraging watsonx and creating lasting value for AI leaders and clients, both existing and new.

Rob Thomas, Senior Vice President of Software and Chief Commercial Officer at IBM, emphasized the fund’s role in unlocking the vast potential of the AI revolution, projecting nearly $16 trillion in productivity gains by 2030. The initiative aligns with IBM’s commitment to responsible AI innovation through watsonx, reinforcing the company’s dedication to driving positive outcomes in the AI landscape.

IBM’s commitment to AI investment is exemplified by its recent involvement in the $235 million Series D funding round for Hugging Face, a prominent open-source collaboration platform in the machine learning community. IBM has also contributed extensively to the Hugging Face hub, including the release of the Geospatial Foundation Model in partnership with NASA. Additionally, IBM participated in HiddenLayer’s Series A funding, supporting the expansion of its talent base and the enhancement of its Machine Learning Security (MLSec) Platform, which focuses on securing AI models.

This announcement builds on IBM’s momentum in the AI space, particularly with watsonx, as evidenced by the general availability of the first models in the Watsonx Granite model series. These generative AI models aim to advance the integration of AI into various business applications and workflows. IBM’s commitment to open innovation is further demonstrated by its plans to host Meta’s Llama 2-chat 70 billion parameter model within watsonx. Notably, IBM is the sole investor in the Enterprise AI Venture Fund.