IBM to Invest in Quantum Computing and Cloud Infrastructure in India, Says Ashwini Vaishnaw

Union Minister of Electronics and Information Technology Ashwini Vaishnaw said IBM is planning investments in quantum computing and cloud infrastructure across India, a move expected to create new opportunities for the country’s growing technology talent pool.

The Minister shared the update after holding a meeting with senior IBM officials, highlighting the company’s continued commitment to expanding its presence in India’s advanced technology sectors.

Quantum computing is an advanced form of computing that uses the principles of quantum mechanics to process information.

Unlike traditional computers, which use bits that are either 0 or 1, quantum computers use quantum bits or qubits, which can be both 0 and 1 at the same time. This enables them to solve highly complex problems much faster than conventional systems.

How Will IBM’s Quantum and Cloud Investments Benefit India’s Technology Talent Pool?

Applications include drug discovery, financial modelling, cybersecurity, artificial intelligence and advanced scientific research.

Earlier, during the World Economic Forum summit at Davos, Vaishnaw met IBM CEO Arvind Krishna and Meta Chief Global Affairs Officer Joel Kaplan to discuss India’s expanding role in the global technology landscape.

Discussions included the safety of social media users, particularly concerns related to deep fakes and AI generated content. Meta briefed the Minister on its efforts to protect users from such risks.

Vaishnaw also highlighted that collaboration with IBM will strengthen India’s push in advanced chip technology, including 7 nm and 2 nm semiconductor nodes.

He noted that the partnership will help further develop India’s semiconductor talent pool and support the country’s ambition to become a major hub for advanced semiconductor design and technology.

How Do IBM’s Quantum and Cloud Investments Reflect Global Confidence in India’s Tech Workforce?

IBM’s planned investments in quantum computing, cloud infrastructure and semiconductor design reflect growing global confidence in India’s technology capabilities and skilled workforce.

The developments came on a day when IBM’s shares witnessed a sharp fall in the United States amid broader market jitters.

Banking and market expert Ajay Bagga told ANI, "Tough day in the US markets on Monday. AI jitters meet Iran forebodings meet Tariffs chaos leading to skittish markets that sold off and stayed sold off. Indian markets have seen FPI buying in February that has supported the markets. Indian futures are down 100 points at the open, though given today is the Feb expiry, expect volatility and two way stop loss triggering moves."

"Global event risk stays the dominant narrative. With old stalwarts like IBM dropping 13 per cent on AI fears, AI remains a disruptive force. Add on the tariffs drama and uncertainty, and we have three negative overhangs on the markets," he added.

Shares of International Business Machines declined sharply after AI startup Anthropic said its Claude Code tool could be used to modernize COBOL, a programming language widely used on IBM mainframes across banking, insurance and government systems.

Why Did IBM Shares Experience the Steepest Drop in Over 25 Years?

IBM shares sank 13.2 per cent, marking the steepest daily drop for the company in more than 25 years and the biggest single day decline since October 18, 2000.

The stock closed on the New York Stock Exchange with a fall of $33.81 at $223.35 per share.

Anthropic said in a blog post that its Claude Code tool could automate the exploration and analysis phases of COBOL modernization.

The post stated, "Modernizing a COBOL system once required armies of consultants spending years mapping workflows. Tools like Claude Code can automate the exploration and analysis phases that consume most of the effort in COBOL modernization. "

"With AI, teams can modernize their COBOL codebase in quarters instead of years," it added.

The claim touched legacy systems run on IBM mainframes and reverberated across software and cybersecurity stocks.

On Monday, shares of cybersecurity companies including CrowdStrike and Datadog also declined as investors assessed the potential impact of Anthropic’s new security tool on the industry.

Software stocks have been under pressure in recent months amid concerns over the growing capabilities of AI tools, an anxiety that intensified after the launch of plug-ins from Anthropic’s large language model Claude, seen as the startup’s push to build an application layer.

(With inputs from ANI)