WSJ What’s News: Why IBM's CEO Thinks His Company Can Crack Quantum Computing
Date: September 21, 2025
Hosts: Christopher Mims, Tim Higgins
Guest: Arvind Krishna (CEO, IBM)
Episode Overview
In this episode of WSJ’s “Bold Names,” hosts Christopher Mims and Tim Higgins delve into IBM’s quantum computing ambitions with CEO Arvind Krishna. The discussion navigates IBM’s history—its former dominance, dip during the 2010s, and recent revival via hybrid cloud and consulting—and focuses on whether IBM, under Krishna’s leadership, can seize a leadership position in quantum computing. This includes candid exploration of technical challenges, lessons learned from past bets like Watson, the competitive landscape, AI’s impact on consulting, and IBM’s broader corporate reinvention.
Key Discussion Points & Insights
IBM’s Comeback & Shift to Quantum
- IBM’s Position: Once a behemoth and then seen as losing its edge, IBM resurged by focusing on hybrid cloud and consulting (01:45–02:10).
- Quantum Ambition: Now, IBM is betting on quantum computing as the next transformative technology, aiming for commercialization within 4–5 years (02:32–02:54).
What Makes Quantum Computing Revolutionary?
- Beyond Classical Limits: Krishna emphasizes quantum’s ability to solve problems classical computers fundamentally “will not solve” (04:54).
- Examples:
- Designing new molecules for carbon sequestration
- Fertilizer improvements via nitrogen fixation
- Corrosion-resistant coatings for underwater pipes
- Examples:
- Richard Feynman’s Maxim: “If you want to simulate nature, you need a quantum computer.” (05:48)
Why IBM—Not Just Rivals—Could Win
- Market Validation: Krishna appreciates others (Google, Microsoft) in the field, as it “helps to make a market” (06:51).
- Technical Moat:
- Thousands of qubits need to work together reliably and accessibly—not just single breakthroughs.
- The challenge lies in scaling, error correction, system robustness, and operating at extreme cold (07:41–10:11).
- Memorable Exchange:
- Krishna: “If you have to have a team of PhDs tuning it after each run, that’s not really a computer.” (08:36)
- Mims: “No big deal, just colder than deep space.” (09:29)
Commercialization Timetable & Scalability
- Expected Return: Commercial impact targeted for 2029–2030, with wider adoption following (11:13).
- Required Milestones:
- Scaling system size
- Proving error correction (14:16)
Lessons from Watson & Managing Hype
- Cautious Optimism: Krishna distinguishes IBM’s approach now vs. Watson era—acknowledging the technology is several years out and not overhyping (21:12).
- Client-Centric Marketing: “I want to do it through the lens of my client and the people who use it…not at all shy…but I want it through the lens of value.” (21:12)
Quantum, AI, and the Consulting Business
- AI's Disruption Potential: Krishna sees AI as transformative—even if it automates significant consulting work, IBM would gain by being more productive and gaining market share, not by layoffs (16:23).
- Quote: “If we run towards it, that means we are more productive...the more productive company gains market share.” (16:58)
- Current AI Adoption:
- Most clients still experimenting; only a small fraction of AI pilots scale up (18:02).
- ROI is the new focus: “Doing the experiment has no value in itself except to prove feasibility.” (18:33)
- Sports metaphor: AI is only in “the first innings.” (19:28)
Reinventing IBM & Competing for Talent
- Leadership Style: Krishna’s engineering background aids communication and rapid scaling once viable (13:02–14:07).
- Talent Strategy: Instead of opulent perks, IBM appeals to those wanting to solve tough, long-term problems: “We want people who want to work… Because if you do… the prize is massive.” (24:44)
- On Tech’s Cycles: Poaching and overheated markets happen with every big wave—Internet, mobile, now AI—history suggests winning teams keep talent (23:02).
Cultural Change & Parallels to Microsoft
- Letting Go of the Past: Krishna credits IBM’s resurgence, similar to Microsoft’s, to not being “overly wedded to your past” (26:43).
- Critical insight: “If you find it really hard to let go, you're forcing your engineers and your sales teams to be very, very defensive in front of clients.” (26:48)
- Long-Game Ambition: IBM aims for both shareholder and client value, eyeing top S&P 500 spots, but acknowledges the rarified challenge at the very top (28:23).
Notable Quotes & Memorable Moments
- On Quantum’s Power
- Arvind Krishna: “If we want to understand how materials really work…could we come up with a coating to reduce corrosion in underwater pipes so oil and gas don’t ever leak into the ocean? Those are the kinds of problems that I’m super excited about.” (04:54)
- On Market Competition
- Arvind Krishna: “I love the fact…others are going after this technology, why it helps to make a market.” (06:51)
- On Quantum Engineering Challenge
- Arvind Krishna: "It’s not enough to have those connected. You need to be able to read and write to it…function all day, all week and all month without needing a team of PhDs to come and tune it between every single run. Because if that’s the case, that’s not really a computer.” (08:36)
- On Commercial Timeline
- Arvind Krishna: “We are looking at 2029, 2030. That’s four to five years out for that return.” (11:13)
- On Leadership as an Engineer
- Arvind Krishna: “I’m an unabashed technologist and geek at heart…having a bit of the background helps me understand two things. One, it’s going to take time…but two, when we get there, I now know how to scale really, really quickly.” (13:02)
- On AI’s Impact on Consulting
- Arvind Krishna: “We are running hard towards making that happen. If half the work [in consulting] happens [via AI], don’t you lose half your consulting business?…No, the exact opposite happens…If you are more productive…you’ll actually win more customers.” (16:58)
- On IBM’s Past
- Arvind Krishna: “If you’re overly wedded to your past and you find it really hard to let go, then effectively you’re forcing your engineers and your sales teams to be very, very defensive in front of clients. And that is not usually a good practice.” (26:43)
Timestamps for Important Segments
- IBM’s resurgence and bet on quantum: 01:45–02:32
- What quantum computing can do: 04:00–05:48
- Competition and the technical challenge: 06:34–10:53
- Return on investment timeline: 11:13
- Caution around hype vs. Watson era: 20:33–21:12
- AI’s disruption to consulting: 16:23–18:02
- On company reinvention and parallels to Microsoft: 26:43–27:45
- IBM’s top 10 S&P 500 ambition: 28:09–29:26
- Summary analysis and skepticism post-interview: 29:48–33:12
Final Thoughts
Krishna projects deliberate optimism, focusing on engineering rigor, long-term commercial potential, and the importance of building ecosystems to ensure that quantum computing evolves as a broadly adopted technology. By openly contrasting past overpromises (notably Watson) and present, cautious confidence about quantum, he positions IBM as both a comeback story and a standard-bearer for deep tech’s next era. The discussion offers valuable insight into how a legacy tech giant can pivot, adapt, and potentially lead again in the age of AI and quantum.
For an inside look at leadership, technical vision, and the future of computing, this episode offers a candid and comprehensive roadmap, in Krishna’s own words.