2024-01-30 18:06:01 ET
Summary
- International Business Machines Corporation is leveraging open-source AI models through partnerships to become a top implementer of AI software in enterprise settings.
- The integration of the Llama 2 model into the Watsonx AI platform is expected to enhance its abilities in content generation and answering users' questions in an enterprise setting.
- IBM's focus on open-source AI models and hybrid cloud solutions is starting to pay off, with strong Q4 earnings and a positive outlook for 2024.
Investment Thesis
While International Business Machines Corporation ( IBM ) has seen tough performance (declining business) for over 10 years, the company is leveraging open-source AI models through its Watsonx studio partnerships to emerge as an open-source AI beneficiary. The tech company has cut partnerships with companies such as their spinout Kyndryl and bought open-source companies like Red Hat (closed in 2019, but the story is coming into focus now). This has been in order to shift their focus towards hybrid cloud solutions and open-source AI with the goal of becoming one of the top implementers of AI software in an enterprise setting....
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For further details see:
IBM 2024 Outlook: Uniquely Set To Ride The Open-Source AI Wave