IBM launches $500 million fund for AI companies

NEW YORK, UNITED STATES — IT technology and consulting giant IBM has announced a new $500 million venture fund that will invest in companies focused on advancing generative AI technology for business applications.

The IBM Enterprise AI Venture Fund will target AI companies ranging from early-stage startups to rapid-growth companies. It will focus on enhancing and accelerating the development of generative AI to be used by enterprises.

The fund will be led by a team of experienced IBM investors and enterprise AI experts. They will aim to facilitate strategic partnerships and provide portfolio companies with guidance on product development, engineering, and go-to-market strategies.

This aligns with IBM’s commitment to ensuring responsible and ethical AI development. The fund also aims to strengthen IBM’s own AI ecosystem, particularly its AI and data platform called watsonx.

“AI is slated to unlock nearly $16 trillion in productivity by 2030. With the launch of the IBM Enterprise AI Venture Fund, we’re opening another channel to harness the enormous potential of the AI revolution into tangible, positive outcomes for IBM and the companies we invest in,” said Rob Thomas, Senior Vice President, Software and Chief Commercial Officer, IBM.

With a presence in over 175 countries, IBM assists clients in capitalizing on insights from their data, streamlining business processes, and gaining a competitive edge. 

IBM has shown a commitment to advancing AI for business use by investing in AI technologies and enterprises. In August, IBM joined a $235 million Series D investment in Hugging Face, a key open-source platform that fosters collaboration in the machine learning community.

IBM is also integrating AI into its latest offerings. The company recently acquired Manta Software and launched an AI-driven managed cybersecurity service that aids businesses in identifying and reacting to threats in both cloud and on-premise setups.

IBM, founded in 1911, operates in 175 countries and has a market cap of $141 billion.