IBM Stock Jumps on Better-Than-Estimated Results, Open-Source AI Strategy [Video]

IBM (IBM) shares are jumping nearly 8% in premarket trading Thursday, a day after the company posted fourth-quarter results that topped analysts’ estimates as its artificial intelligence (AI)-enabled business surged.

IBM reported adjusted earnings per share (EPS) of $3.92, above the consensus estimate of $3.79 of analysts polled by Visible Alpha. Revenue of $17.55 billion was a tick higher than expectation. 

“Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quarter,” IBM CEO Arvind Krishna said.

According to a transcript of the earnings call provided by AlphaSense, Krishna added that IBM’s AI products “provide clients with a consistent and scalable AI foundation built on open source technology.” 

Earlier this week, Chinese startup DeepSeek shook markets with its release of an AI model at a fraction of the cost of rivals like OpenAI that is open source—which means it is readily accessible …