After shocking quarter, IBM insists that AI isn’t killing the mainframe
After IBM's stock crashed last week on warnings of a poor mainframe sales, the CEO explained that AI wrecked corporate hardware budget, temporarily.
IBM reported earnings that fell well short of Wall Street expectations, with its mainframe business declining 42% during the quarter. This matters because mainframe hardware sales directly generate additional software revenue, so the hardware decline cascades into reduced profits overall. The CEO attributed the decline to customers delaying mainframe purchases to redirect budget toward other expensive hardware facing extreme price increases due to component costs from the AI boom. IBM leadership stated this was a temporary issue and insisted that customers would still buy mainframes eventually, with no evidence of clients abandoning the platform entirely.
One short email a day with the stories that matter. Free. Unsubscribe with one click.
Want to go deeper than the news? Explore live, cohort-based AI courses taught by practitioners.
Browse AI courses on Maven
Nvidia is reportedly preparing to fire Jensen Huang
Nvidia's board is preparing to dismiss CEO Jensen Huang following a report from the New York Times about a second alleged extramarital affair, just days after he admitted to a separate affair with a woman alleged to be a Chinese spy, The Wall Street Journal reports. The second alleged affair was with an executive who reports to him, Nvidia's vice president of health care, Kimberly Powell, according to the Times, saying the two may have been captured on video "being affectionate
Also reported by TechCrunch and Wired AI
Nvidia CEO Jensen Huang resigns amid spy, affair scandals
Jensen Huang at GTC Berlin last month. | Photo: Soeren Stache / picture alliance via Getty Images Nvidia's board has ousted Jensen Huang, its longtime co-founder, president, and CEO, after reports of two extramarital affairs - one with an alleged Chinese spy and one with an Nvidia executive who reported to Huang. A press release published Thursday morning announced Huang's resignation, effective immediately, as current CFO Colette Kress has been appointed interim CEO. Huang has
The unfolding Jensen Huang scandal: a timeline
The affair could have ramifications for national security as the U.S. and China race to develop the most advanced AI infrastructure.
Jensen Huang accused of having another affair, with an Nvidia exec
Jensen Huang, who has come under fire for admitting to an affair with a woman accused of being a Chinese intelligence agent, has been accused of having a separate affair with an Nvidia subordinate.
Congress to call Jensen Huang in to answer for alleged Chinese spy affair
Nvidia CEO Jensen Huang has until the end of the day Wednesday to answer a call from House Republicans for a closed-door briefing on his affair with alleged Chinese spy.
Nvidia is investigating Jensen Huang’s relationship with a Chinese spy
Nvidia has announced that it is opening an investigation into CEO Jensen Huang and his relationship with Megaspeed executive Alice Huang, who was reportedly recruited by China's Ministry of State Security to spy on the company. A statement posted by the board of directors reads: The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. A committee of independe
Also reported by TechCrunch, Wired AI and Data Center Knowledge