ARMONK, N.Y. - IBM (NYSE: NYSE:IBM) has announced a collaboration with Amazon (NASDAQ:AMZN) Web Services (AWS) to offer its comprehensive watsonx artificial intelligence (AI) and data platform on AWS. This move, revealed at the annual IBM Think conference, aims to simplify the scaling of AI in enterprises through an open, hybrid approach with end-to-end governance.
The partnership will see the integration of IBM's watsonx.governance with Amazon SageMaker, a service for building, training, and deploying machine learning and generative AI models. This integration is designed to help customers manage model risk and comply with regulations such as the EU AI Act. The watsonx platform, including watsonx.ai and watsonx.data, is already available in the AWS Marketplace as customer-managed offerings.
Ritika Gunnar, General Manager of Product Management for Data and AI at IBM, emphasized the importance of an open AI and hybrid cloud strategy for businesses to derive value from AI with trusted data, regardless of the technology or location. The enhanced relationship with AWS is set to combine IBM's AI governance with Amazon SageMaker, providing customers with flexibility, scalability, and integration with AWS services.
Starting in June, the watsonx.governance and Amazon SageMaker integration will enable clients to streamline workflows, accelerate AI initiatives, and manage AI across complex IT environments. Customers will be able to configure customizable risk assessment and model approval workflows, creating an audit trail across watsonx and Amazon SageMaker.
Supporting comments came from Chris Konow, CEO of CleanSlate Technology Group, and Adi Paz, CEO of GigaSpaces Technologies, both highlighting the governance benefits of combining AWS SageMaker with watsonx.governance.
Additionally, watsonx.data is now available on AWS to facilitate data access and transformation for generative AI workloads. IBM's offerings on AWS also include software products and consulting services across 92 countries.
InvestingPro Insights
As IBM (NYSE: IBM) enhances its collaboration with AWS to bolster AI and data management capabilities, investors are keenly observing the company's performance metrics. IBM's strategic moves, such as the integration of watsonx.governance with Amazon SageMaker, reflect its commitment to innovation and growth in the AI space. This commitment is underscored by IBM's consistent dividend payments, with the company maintaining its dividend for 54 consecutive years, a testament to its financial stability and investor-friendly approach.
InvestingPro data shows IBM with a robust market capitalization of $156.09 billion, illustrating the company's substantial presence in the industry. The P/E ratio, standing at 18.97, suggests that investors are willing to pay a premium for IBM's earnings, possibly due to the company's promising outlook in AI and cloud services. Additionally, the company's revenue growth over the last twelve months as of Q1 2024, at a steady 2.45%, indicates a consistent upward trajectory in its business operations.
Among the InvestingPro Tips, it is particularly noteworthy that IBM is trading at a high Price/Book multiple of 6.71, which could signal that the market recognizes the value of the company's assets and its potential for future earnings. Furthermore, the fact that IBM is profitable over the last twelve months and analysts predict the company will remain profitable this year could provide reassurance to investors about the company's financial health amidst its technological advancements.
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