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IBM Stock Hits Record High on Anthropic Deal. It’s Not OpenAI, but It Will Do.

Oct 07, 2025 07:46:00 -0400 by Mackenzie Tatananni | #Technology

International Business Machines said it was partnering with Anthropic to use its family of large language models in select IBM software. (David Paul Morris/Bloomberg)

Key Points

OpenAI has been making deals left and right, but International Business Machines said Tuesday that it had agreed to a strategic partnership with Anthropic to use its artificial-intelligence models in IBM software.

Under the terms of the deal, IBM will integrate Anthropic’s Claude, a family of large language models, into certain development tools and enterprise products, the companies said. The models will first appear in IBM’s integrated development environment, a software application that is currently available to select IBM clients as a preview.

IBM stock climbed 3.4% to $299.37 following the announcement. The gains put the stock on pace for an all-time closing high, according to Dow Jones Market Data.

Shares traded as high as $300.79 earlier in the session, marking an intraday record.

IBM has undergone several transformations since the time of its founding as a maker of data processing machines. Once a leader in the personal computer market, it sold that business in 2005. Currently, it generates the bulk of its revenue from consulting and software.

The company has recently embraced quantum computing and, of course, AI. IBM wrote in its annual report at the end of 2024 that its clients had “moved beyond experimentation” and were looking to generate return from their investments in the technology.

The integration of Claude into IBM’s existing software was billed as a way for businesses to improve productivity and cut costs. IBM stressed that the partnership would enhance its product portfolio “while maintaining code quality and security standards.”

Anthropic has made similar promises about its AI. The startup unveiled its latest model, Claude Sonnet 4.5, at the end of September. In a blog post at the time, Anthropic dubbed it “the best coding model in the world.”

The company was founded in 2021 by former OpenAI executives, and counts Amazon and Alphabet among its major backers. Anthropic said last month that it had raised $13 billion in a Series F fundraising round, bringing its valuation to $183 billion.

Still, one name in AI seems to dominate the news cycle. Just on Monday, Advanced Micro Devices unveiled a partnership with OpenAI, saying it would power 6 gigawatts of the company’s AI infrastructure with its chips.

IBM itself is no stranger to collaborating with OpenAI. In August, the ChatGPT maker publicly released two AI models to the public, allowing developers to download and customize them freely. The larger of the models was hosted on IBM’s watsonx.ai developer studio.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com