IBM shares hit a record after announcing a partnership with rival OpenAI

Shares of International Business Machines, which develops enterprise solutions in artificial intelligence, cloud computing, automation and cybersecurity, jumped 4% in trading on Tuesday, October 7, reaching an all-time high. The company announced plans to integrate artificial intelligence technology from startup Anthropic, known for chatbot Claude, into its products.

IBM's papers rose in price by 3.9% to $300.8 at the trades on October 7. This is their maximum value, notes Barron's. Investors positively perceived the company's statement about cooperation with AI-startup Anthropic.

IBM said its customers will have access to Anthropic's Claude family of large language models. Neural networks will be embedded in the new development environment to help programmers write code when building applications. This is one of the most promising applications of AI - vibe-coding, that is, an approach in which AI tools make the process of program development faster and allow non-professionals to try their hand at programming, Bloomberg explains. According to IBM, such a product is already available to more than 6 thousand users within the framework of cooperation with Anthropic.

Going forward, the startup's models will be used in other IBM offerings, the company said.

Since the beginning of the year, IBM shares have risen nearly 36%. According to MarketWatch, of the 23 analysts tracking the technology company's securities, 11 recommend holding its shares in the portfolio, nine - to buy, and three - to hold. Wall Street is not expecting IBM shares to rise yet: the analysts' consensus price target is $198, which roughly corresponds to the current value of the securities.

Investors are closely watching strategic alliances between tech giants and young AI companies, Bloomberg writes. Shares of chip maker Advanced Micro Devices soared nearly 30% on Monday and reached a one-year high after a deal with ChatGPT developer OpenAI was announced. Last week, quotes of Europe's largest software developer SAP also rose thanks to an agreement with OpenAI: the companies plan to offer AI services for the German public sector from 2026.

This article was AI-translated and verified by a human editor