IBM CEO Arvind Krishna said Thursday that investors will not have to wait much longer for quantum computing to become a meaningful business for the company. “I think that in 2028 or 2029, you’ll see it have a measurable impact on our top line and bottom line,” Krishna said on CNBC’s Mad Money. “By the end of the 2030s, we are now pretty convinced this is a trillion dollars of value.”
Krishna’s comments came as IBM and startup AlgorithmQ unveiled new research describing what they called a quantum computing advantage. “A quantum computer can do things better, faster, cheaper, in a way that normal classical computers cannot do at this time,” Krishna said. The companies said a quantum computer can solve certain computational problems more efficiently than today’s most advanced classical computers while also verifying the results.
Krishna said IBM’s quantum computers have uncovered behaviors in materials that researchers were unable to observe using conventional computing. He said those insights could eventually lead to better batteries, more advanced materials, improved fusion energy, and smarter medicines.
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“A quantum computer can do things better, faster, cheaper, in a way that normal classical computers cannot do at this time,” Krishna said.
While some have shown skepticism about quantum computing being of practical use in the near future, Krishna said IBM is already seeing meaningful progress toward real-world applications.
Earlier this year, the Trump administration announced plans to take $2 billion in equity stakes across nine quantum computing companies, including a new IBM venture, according to Reuters. The initiative is part of a broader effort to strengthen the domestic supply chain and counter China’s advances in critical technologies. The U.S. Department of Commerce said IBM would receive $1 billion to establish a new company dedicated to manufacturing chips for quantum computers.
Krishna also sought to reassure investors after IBM’s earnings update earlier this month triggered the company’s worst single-day stock decline on record. IBM shares fell 25% on July 14 following the announcement and have since recovered only about 2%. In its earnings report, the company said some customers had delayed capital spending projects, raising concerns about near-term demand and whether AI could pose long-term risks to its software business.
Krishna said those projects had been postponed rather than canceled.
“Here’s the good news: about 40% of them have already closed in three to four weeks. … That’s a good signal that it is a deferral, not a destruction,” Krishna said.