On theCUBE Pod: IBM Think goes AI first and Musk buries the hatchet with Anthropic

Overview

On theCUBE Pod, analysts Dave Vellante and John Furrier discuss takeaways from IBM Think, where CEO Arvind Krishna emphasized AI as the operating model of the future and positioned IBM's platform as a control plane for AI and quantum infrastructure. They debate whether IBM undersold its potential and whether its Red Hat ecosystem can challenge larger AI players. They also cover SpaceX's surprise deal to give Anthropic its compute capacity, no longer used for Grok.

Key Takeaways

At IBM Think, CEO Arvind Krishna emphasized AI as the operating model of the future and positioned IBM as a control plane for AI and quantum infrastructure.
The analysts describe a new persona, the AI builder, an employee who can prompt AI models to accomplish business tasks.
Furrier likened the current market to 16-year-olds driving with little maturity, citing immaturity in how AI is being adopted.
IBM has shifted from a services-based company back to a products-based company.
Vellante said mainframes are the one product where IBM is the clear number one, and quantum could be a similar opportunity.
SpaceX struck a surprise deal giving Anthropic its compute capacity, which is no longer being used for Grok.

IBM Think goes AI first

Krishna framed AI as central to IBM's future.

›Krishna emphasized AI as the operating model of the future.
›He positioned IBM's platform as a control plane for AI and quantum infrastructure.
›Critics felt Krishna may have undersold the company's potential.

The analysts said IBM Think was meant to present a picture of IBM's future, but some critics thought the message understated IBM's potential.

The AI builder persona

›A new persona is emerging: the AI builder.
›This is an employee with a business or analytics background who can prompt AI models.
›The role centers on accomplishing certain business tasks through prompting.

Furrier compared the current enterprise state to a teenager driving their first car, saying there is a lot of immaturity in how the market uses AI.

IBM's transformation

›IBM has undergone a transformation from a services-based company back to a products-based company.
›Furrier said he would have advised Krishna to flex hard on why Red Hat was a good bet.
›The question remains whether IBM's Red Hat ecosystem will challenge the AI giants.

Furrier suggested using Red Hat as a stepping stone to point to what IBM is doing today, which he said would give the enthusiastic market more confidence.

Red Hat and integration

›Vellante called Red Hat a viable but loosely integrated platform.
›IBM owns Red Hat and could pursue deeper integration.
›IBM may not feel comfortable leading with an integrated stack story like Oracle or Nvidia.

Vellante noted that IBM hooks into Red Hat from an ecosystem it is part of, and that the company has not led with the integrated stack story that competitors use.

Quantum opportunity

›Krishna focused on the future of infrastructure, including quantum.
›Experts predict a 'ChatGPT moment' for quantum.
›IBM could dominate quantum if it plays its cards right.

Vellante said mainframes are the one product where IBM is the clear number one, and suggested quantum could be a redo of IBM's mainframe glory if the company becomes the number one in that category.

SpaceX and Anthropic deal

›SpaceX struck a surprise deal with Anthropic.
›SpaceX is giving Anthropic all of its compute capacity.
›That capacity is no longer being used for Grok.

The analysts said the deal aligns with theCUBE Research's view that compute capacity will be the biggest constraint on the AI era.

Frequently Asked Questions

What did Arvind Krishna emphasize at IBM Think?

He emphasized AI as the operating model of the future and positioned IBM's platform as a control plane for AI and quantum infrastructure.

What is the AI builder persona?

It is an employee with a business or analytics background who can prompt AI models to accomplish certain business tasks.

What is the SpaceX deal with Anthropic?

SpaceX is giving Anthropic all of its compute capacity, which is no longer being used for Grok.

How do the analysts view IBM's quantum prospects?

They predict a 'ChatGPT moment' for quantum and suggest IBM could become the clear number one in that product category, similar to its mainframe leadership.

How has IBM's business model changed?

IBM has undergone a transformation from a services-based company back to a products-based company.

The analysts see IBM betting on AI and quantum while compute capacity, as shown by the SpaceX-Anthropic deal, remains the era's key constraint.