IBM CEO Arvind Krishna celebrated strong quarterly earnings and a surging stock price by highlighting his company’s open-source AI model, DeepSeek, as a key driver of success. The company’s earnings report showed revenue growth of 1% year-over-year to $17.6 billion, with software revenue increasing 10%. IBM attributed the growth to robust demand for its generative AI products.
Krishna emphasized that IBM’s open-source approach is key to innovation, citing its co-founding of the AI Alliance and release of open-source models under the Apache license. The company’s Granite family of models has been made available, while its Watsonx platform offers access to both open-source and proprietary AI models. Krishna believes smaller, specialized models can be more efficient for enterprise businesses.
The IBM CEO also defended his company’s decision to open source its models, saying it would allow clients to fine-tune them on their own data. This approach could help clients address unique needs while reducing costs. With IBM stock up over 12% and the company beating analysts’ expectations, Krishna’s comments suggest a promising future for IBM’s AI strategy.
Source: https://fortune.com/2025/01/30/ibm-earnings-jump-shares-climb-ceo-arvind-krishna-deepseek-open-source-ai