IBM plans to invest more than $10 billion in quantum computing over the next five years as it pursues a large-scale fault-tolerant quantum computer by 2029. The announcement expands IBM’s commitment across hardware, software, manufacturing, and ecosystem development while reinforcing its long-term quantum roadmap.
What is Covered in This Article:
- A planned investment of more than $10 billion will support quantum computing research and development, manufacturing expansion, ecosystem growth, M&A, and capital expenditures over the next five years.
- Delivery of IBM Quantum Starling in 2029 is central to the company’s roadmap toward large-scale fault-tolerant quantum computing.
- More than 90 deployed quantum systems and a network of over 340 organizations highlight the scale of the company’s existing quantum ecosystem.
- Development of Anderon, a standalone quantum wafer foundry supported by investment from the U.S. Department of Commerce
- The initiative combines investments in quantum hardware, software, and manufacturing to build on early commercial traction.
The News: IBM announced plans to invest more than $10 billion in quantum computing over the next five years. The investment will span research and development, manufacturing scaling, ecosystem partnerships, capital expenditures, mergers and acquisitions, and software development. IBM stated that the funding supports its roadmap beyond delivering IBM Quantum Starling in 2029, which it describes as the world’s first large-scale fault-tolerant quantum computer.
The announcement expands beyond internal R&D to support IBM’s existing quantum ecosystem, which includes more than 90 deployed quantum systems worldwide, over 340 organizations participating in the IBM Quantum Network, and the Qiskit software platform used by nearly 70% of quantum developers. The investment also follows IBM’s plans to establish Anderon, a standalone quantum wafer foundry in New York, supported by a Letter of Intent with the U.S. Department of Commerce and proposed CHIPS Act incentives.
IBM Maps a $10 Billion Path to Fault-Tolerant Quantum Computing
Analyst Take: IBM’s investment shows that quantum is ready for revenue-generating primetime. The company is funding hardware development, software, manufacturing infrastructure, ecosystem growth, and potential acquisitions under a single long-term roadmap. The announcement also combines previously separate initiatives, including the development of IBM Quantum Starling and the creation of Anderon, into a broader strategy focused on scaling quantum computing beyond today’s systems. While many quantum announcements focus on future performance targets, IBM explicitly outlines the supporting infrastructure required to reach those targets. The resulting strategy extends beyond building quantum computers and into establishing the manufacturing and software foundations needed to generate revenue with them.
The Roadmap Depends on More Than Hardware Performance
IBM continues to anchor its quantum strategy around fault tolerance, identifying IBM Quantum Starling as its target system for 2029. Starling can execute 20,000x more operations than existing systems. This outperformance establishes the foundation for IBM Quantum Blue Jay, which is designed to run one billion quantum operations across 2,000 qubits as early as 2023. IBM’s decision to spread investment across research, manufacturing, software, and ecosystem development reflects the reality that achieving fault tolerance requires progress across multiple disciplines rather than hardware improvements alone.
IBM Already Operates at Commercial Scale
The investment builds on a world-class quantum ecosystem. IBM has deployed the world’s largest fleet of 90 quantum systems globally and maintains a network of more than 340 organizations spanning financial services, healthcare, materials science, academia, and government. The company has also signed more than $1.1 billion in quantum-related contracts since 2017 to support customer exploration and adoption efforts. These figures indicate that IBM is not building its roadmap from a purely experimental foundation but from an existing commercial ecosystem with active users, research programs, and deployed infrastructure. As a result, the company enters the next phase of its roadmap with an installed base that can directly participate in the transition toward larger-scale systems.
Software and Infrastructure Remain Critical Enablers
IBM’s announcement places significant attention on hardware, but software and infrastructure remain equally important components of the strategy. IBM’s Qiskit software stack is used by nearly 70% of quantum developers and has executed more than 4 trillion quantum circuits, making it one of the most widely adopted quantum software platforms. IBM also highlighted ongoing scientific work involving protein modeling, magnetic material simulation, and molecular research as evidence of increasing quantum utility. Developer feedback on quantum software can prepare hybrid systems for commercial impact over the next five years, making this investment likely to be evaluated in terms of ROI over the next 10 years.
What to Watch:
- IBM expects partners using its quantum systems to demonstrate quantum advantage in 2026, making future research results an important indicator of progress toward broader commercial adoption.
- The development of Anderon will signal how quickly dedicated quantum manufacturing infrastructure can scale.
- IBM’s progress toward IBM Quantum Starling will remain closely tied to its ability to improve error correction and achieve the fault-tolerant performance targets outlined in its roadmap.
- The continued expansion of IBM’s quantum ecosystem, including customer deployments, software adoption, and research collaborations, will help determine how quickly quantum computing moves from experimentation toward larger-scale commercial use.
See the full press release on the company website.
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Author Information
Brendan is Research Director, Semiconductors, Supply Chain, and Emerging Tech. He advises clients on strategic initiatives and leads the Futurum Semiconductors Practice. He is an experienced tech industry analyst who has guided tech leaders in identifying market opportunities spanning edge processors, generative AI applications, and hyperscale data centers.
Before joining Futurum, Brendan consulted with global AI leaders and served as a Senior Analyst in Emerging Technology Research at PitchBook. At PitchBook, he developed market intelligence tools for AI, highlighted by one of the industry’s most comprehensive AI semiconductor market landscapes encompassing both public and private companies. He has advised Fortune 100 tech giants, growth-stage innovators, global investors, and leading market research firms. Before PitchBook, he led research teams in tech investment banking and market research.
Brendan is based in Seattle, Washington. He has a Bachelor of Arts Degree from Amherst College.
