IBM CEO's AI Reality Check: Speed vs. Being Left Behind

0:00It's April 20, Durham News Today starts now, AI powered and ready. I'm Cory with the story. IBM CEO, Arvin Krishna, just dropped a reality check on the AI race. He says the real danger for companies ain't speeding ahead too quick, but getting left in the dust. In a recent interview, he stressed that tech has leveled up to match your balance sheet and importance, and too many leaders still see it as just. Back up support. IBM's all-in on this shift. Pumping resources into their Watson XAI platform, hybrid cloud setups that blend private and public systems, and big bets, like quantum computing. Meanwhile, the stock's taken a hit, down 14% near-to-date after a 20% plunge in February. Investors got spooked by rivals like Anthropics' new tools that could automate old school cobalt updates, hitting IBM's lucrative consulting, and mainframe gigs hard. Analysts at Morgan Stanley even trimmed their price target to $215 from $247, keeping

1:00an equal weight rating. Ahead of earnings, Krishna predicts AI's future as a mix, a few massive language models for broad tasks, plus hundreds of smaller, laser-focused ones with tailored data. Looking further, quantum computing's three to five years out, set to crack problems, AI can't touch by straight up computing wild futures. This lines up perfect with IBM's hybrid push, urging execs to make tech the heart of their game plan before its game over. Those quarter numbers drop April 22nd.