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IBM CEO: AI Temporarily Crushed Corporate Hardware Budgets, Not the Mainframe

IBM's stock fell sharply after the company warned of weak mainframe sales, prompting CEO to clarify that surging AI investment has temporarily crowded out corporate hardware budgets. He insisted that AI is not killing the mainframe — companies are simply prioritising AI spending for now, leaving mainframe purchases on hold. IBM remains confident that demand for large-scale computing will rebound once AI budgets stabilise.