IBM Launches $500 Million Enterprise AI Venture Fund
On November 7, IBM announced the launch of a $500 million Enterprise AI Venture Fund. The fund will focus on accelerating generative AI technology and research for the enterprise. This move comes at a time when generative AI products like OpenAI’s ChatGPT and Google’s Bard are making waves in the consumer market.
IBM’s focus, however, is on enterprise-level solutions for its generative AI products such as its Watson X platform and various cloud offerings. According to Rob Thomas, a senior vice president at IBM, generative AI technologies are expected to drive productivity and profitability in the next decade. He stated that AI is projected to unlock nearly $16 trillion in productivity by 2030.
The details of how IBM plans to invest the $500 million AI Venture Fund are still unclear. The fund will primarily focus on generative AI tech and will be used to invest in a range of AI companies, from early-stage to hyper-growth startups.
IBM’s Investments and Support for Enterprise AI Startups
In August, IBM participated in a $235 million series D funding round for Hugging Face, a generative AI firm known for its extensive transformer libraries. This investment adds to IBM’s ongoing trend of investing in enterprise AI startups while actively supporting the development of open-source platforms, models, and protocols.
Hugging Face co-founder and CEO Clem Delangue expressed confidence in the impact of the partnership with IBM, emphasizing that it will accelerate their impact on AI with the IBM Enterprise AI Venture Fund.
Hot Take: IBM’s Push for Enterprise AI
With the launch of its $500 million Enterprise AI Venture Fund, IBM is positioning itself as a major player in advancing generative AI technology for enterprise applications. This move aligns with the company’s commitment to driving productivity and profitability through innovative AI solutions. By investing in startups and supporting open-source platforms, IBM is solidifying its position as a leader in enterprise-level AI development.
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