Rob Thomas

Big picture is we have a lot of momentum in AI with Watson X. As we said on our earnings last quarter, $7.5 billion as a book of business.

And we're trying to solve the client problem of how do they deploy AI faster.

So this partnership is all about what Jonathan said, which is 5X performance at 20% of the cost.

We've seen it with Watson X running on Grok, and so we will be distributing Grok as part of our go-to-market, and there's a revenue share as part of that.

We are really excited because we've seen clients already getting an impact to how they're deploying AI because of the integration of our technology together.

We looked at every possibility in the market and the clients are looking for significant performance.

So something that changes how your call center operates or how your supply chain runs.

And then you combine that with a fraction of the cost

suddenly the economics make sense.

AI does have a cost problem, and we think this breaks through that.

In IBM, we've said we're going to drive $4.5 billion of productivity by the end of this year.

That's another example of AI truly having an impact.

And the number one question I get from clients now is, how are you doing that at IBM, and can you help us do that?

And we think the combination of IBM and Grok can make this a reality for any company.

As often happens, I would say financial services have been early adopters.

But the thing that has changed in the market in the last six months is everything is moving to multi-model.

We have IBM models that we open sourced, which are the Granite models.

We announced a partnership with Anthropic.

We have a partnership with Mistral and Llama, just to name a few.

What is incredible about what Jonathan and team have built is any model can run.