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IBM said it will invest more than $10 billion in quantum computing over the next five years, aiming to build a large-scale fault-tolerant quantum computer by 2029. The company also announced a separate $5 billion IBM and Red Hat initiative focused on open-source software security.
The quantum plan comes after the Trump administration moved to take $2 billion in equity stakes across nine quantum computing companies. IBM is set to receive $1 billion for Anderon, a new quantum chip manufacturing venture in the US
IBM said the $10 billion quantum investment will support research and development, capital expenditure, manufacturing expansion, ecosystem partnerships, and acquisitions. The company said the funding will help strengthen its position in quantum computing as governments and companies increase spending in the sector.
The goal is to deliver a large-scale quantum computer by 2029 that can run complex calculations reliably. Fault tolerance remains a key challenge for the industry, as current quantum systems still face high error rates that limit wider commercial use.
However, IBM said it has already deployed more than 90 quantum systems. It said that figure is higher than the number reported by all other industry players combined. The company also said more than 325 Fortune 500 companies, startups, universities, and government agencies use its quantum systems.
IBM said it will contribute $1 billion to Anderon, which is planned as the first dedicated quantum chip manufacturing facility in the US The company also plans to provide intellectual property, assets, and workforce support to the venture.
Anderon is expected to offer chipmaking technology to outside customers. IBM said the venture has already held talks with potential clients, while additional investors may join as the company grows.
The federal support reflects Washington’s effort to secure US leadership in quantum computing and compete with China. The move follows rising interest in quantum technology for fields such as chemistry, biology, materials science, financial modeling, and cryptography.
Still, doubts remain over how soon quantum computing can become widely useful. Alphabet CEO Sundar Pichai said last year that “practically useful” quantum computers were five to 10 years away, pointing to the technical barriers still facing the industry.
Separately, IBM and Red Hat announced Project Lightwell, a $5 billion effort to improve open-source software security. The project will use advanced AI tools and more than 20,000 engineers to help companies find, test, and fix vulnerabilities across software supply chains.
Open-source software powers much of modern enterprise technology. However, its wide use has made it a target for attackers especially as AI tools make it easier to identify security flaws. Project Lightwell is designed to act as a clearinghouse where companies can report issues, receive tested fixes, and share patches with open-source communities.
IBM and Red Hat have already worked with early adopters, including Bank of America, Citi, Goldman Sachs, JPMorgan Chase, Mastercard, Morgan Stanley, Visa, and Wells Fargo. The commercial service is expected to launch within 30 days through subscription plans.
Rob Thomas, IBM’s Senior Vice President of software, said clients would receive a ‘stamp of approval’ showing that their open-source software is safe for production use. Meanwhile, IBM shares rose 1.7% in premarket trading after the announcements.
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