ARMONK, N.Y. - Lockheed Martin (NYSE:LMT), the global defense technology leader, has announced the integration of IBM (NYSE:IBM)'s advanced Granite large language models (LLMs) into its AI Factory tools, a move that is poised to boost innovation in defense and aerospace sectors. This collaboration will provide Lockheed Martin's workforce, which includes over 10,000 developers and engineers, with sophisticated AI capabilities to improve national security missions and business processes. IBM, currently trading near its 52-week high with a market capitalization of $211.7 billion, has shown remarkable market performance with a 45% year-to-date return, according to InvestingPro data.
The AI Factory environment at Lockheed Martin is designed to fast-track the development cycle, reducing the time from ideation to deployment from months to weeks. It incorporates commercial best practices, establishes comprehensive development pipelines, and enforces strict data governance to enhance efficiency and resource management. The addition of IBM's Granite LLMs is expected to further enhance this environment with state-of-the-art coding, language processing, advanced reasoning, and safety features. With an overall financial health score rated as "GOOD" by InvestingPro, IBM continues to demonstrate strong operational performance, generating annual revenue of $62.6 billion.
Dr. Steven H. Walker, Lockheed Martin's vice president and chief technology officer, emphasized the importance of integrating top commercial AI capabilities with the company's leading AI products and technology to deliver superior AI capabilities to customers. Vanessa Hunt, IBM's technology general manager for the U.S. federal market, also expressed enthusiasm for the collaboration, highlighting the shared commitment to responsible and open innovation.
Lockheed Martin's AI initiatives align with the U.S. Defense Department's five AI Ethics principles – Responsible, Equitable, Traceable, Reliable, and Governable. The company has also developed an internal AI ethics training program to ensure responsible application of AI technology by its employees.
Both companies underscored the importance of this integration in enhancing decision-making capabilities and streamlining mission-critical insights across defense and aerospace domains. The collaboration is set against the backdrop of a rapidly evolving global security environment, with Lockheed Martin committed to providing 21st Century Security® solutions through partnerships with national security customers, technology and telecommunications companies, and U.S. allies.
IBM, listed on the New York Stock Exchange (NYSE: IBM), is a leader in hybrid cloud and AI solutions, offering consulting expertise to help clients across various industries achieve digital transformation. The company has maintained dividend payments for 54 consecutive years, demonstrating remarkable financial stability. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and over 1,400 other top US stocks. Lockheed Martin continues to drive innovation and scientific discovery in defense technology to ensure the readiness and superiority of the solutions provided to its clients.
This news is based on a press release statement.
In other recent news, IBM has been making significant strides in strategic partnerships and financial performance. The company announced a global collaboration with defense intelligence company Janes, aiming to integrate Janes' defense and security intelligence data with IBM's AI and data platform, WatsonX. They also expanded their partnership with Amazon (NASDAQ:AMZN) Web Services, introducing new AI offerings on Amazon Bedrock and SageMaker JumpStart. IBM's Q3 2024 financial report showed a total revenue of $15 billion, with software revenue growing by 10% and Red Hat's performance increasing by 14%. BMO Capital Markets upgraded its price target for IBM to $260, maintaining a Market Perform rating.
IBM also announced a regular quarterly cash dividend of $1.67 per common share, reinforcing its commitment to returning value to shareholders. The acquisition of HashiCorp (NASDAQ:HCP), initially scheduled for completion in Q4 2024, is now expected to close in Q1 2025. Despite the delay, Evercore ISI maintained its positive stance on IBM, reiterating an Outperform rating and a price target of $240.00. IBM has also partnered with the Ultimate Fighting Championship to develop the UFC Insights Engine using IBM's artificial intelligence platform. These are recent developments that reflect IBM's commitment to growth and innovation.
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