Funding for quantum startups has surged in 2025, driven by emerging applications and proof-of-concept projects, signaling a maturing market with increased investor interest.

IBM plans to develop the world's first large-scale, fault-tolerant quantum computer by 2029, including constructing quantum-focused data centers and a network for quantum computing, as part of its broader quantum strategy.

The company has observed rapid growth in quantum startup funding in 2025 and is actively implementing plans to build this groundbreaking quantum infrastructure.

IBM’s past investments, such as a $100 million fund for Watson AI, demonstrate its ongoing commitment to AI innovation and ecosystem development, now exemplified by the Watsonx platform.

While quantum technology remains in early stages, IBM emphasizes building long-term ecosystems and credible use cases to ensure sustainable growth and market readiness.

Recent investments include a $26 million Series A funding round for Qedma, which develops error mitigation software for quantum processing units, and collaborations with universities like the University of Chicago to foster innovation.

IBM Ventures prioritizes engaging with startups to facilitate proof-of-concept studies, connecting them with IBM researchers and clients to explore practical applications across industries such as chemistry, logistics, and finance.

On the AI front, IBM supports a multi-model approach, backing startups that develop applications using various models tailored for specific purposes, rather than relying on a single 'winner' model.

Emily Fontaine, head of venture capital at IBM, states that quantum technology is now as crucial as AI for IBM, with both being top priorities for IBM Ventures, aiming to reshape industries with these transformative technologies.

IBM Ventures is actively investing in quantum software startups and aims to develop a comprehensive ecosystem that includes startups, universities, and IBM's hardware and software offerings, with a focus on deep collaboration and long-term growth.

IBM’s long-term AI strategy involves building partnerships with startups and universities through initiatives like the Watsonx AI Labs accelerator, emphasizing sustained collaboration over quick returns.

Despite its focus on quantum, IBM continues prioritizing enterprise AI investments, targeting startups working on domain-specific tools, automation, and multi-model AI systems for deep integration into IBM’s platforms.