IBM Targets AI-Driven Sectors With Launch of Power11 Servers

International Business Machines Corp. (IBM) launched its latest generation of enterprise-grade servers, the Power11 lineup, on Tuesday, which will be available starting July 25.

IBM stock inched 0.3% higher in Tuesday's premarket trading, following the launch.

The announcement sheds light on a reimagined infrastructure platform built to meet the ever-growing demands of AI-driven operations, hybrid cloud deployments, and unrelenting uptime requirements.

The new lineup is tailored for industries such as banking, healthcare, the public sector, and retail, adding that the platform is built to support essential workloads as these sectors navigate the growing demands of AI adoption and digital transformation.

It added that Power11 marks a significant advancement in server design, featuring enhanced processing capabilities, improved virtualization layers, and increased system durability. 

According to IBM, Power11 offers a 99.9999% system availability and eliminates the need for planned maintenance downtime. It comes equipped with IBM Power Cyber Vault, a cybersecurity solution that can identify ransomware threats in less than sixty seconds. 

Built on National Institute of Standards and Technology (NIST) guidelines, the system utilizes immutable data snapshots and quantum-resistant encryption to protect against advanced cyber threats.

Power11 also supports IBM’s upcoming Spyre Accelerator, an on-chip AI processor arriving in the fourth quarter (Q4) 2025, designed to handle the surge in AI tasks across hybrid environments.

“We are taking advantage of the full IBM stack to deliver hybrid cloud, AI, and automation capabilities while building on our decades-long reputation as a trustworthy hybrid infrastructure for essential workloads,” said the General Manager of Power Systems at IBM, Tom McPherson.

IBM claims the Power11 platform brings notable energy savings, delivering double the performance per watt compared to x86-based servers. The company also announced the introduction of a new Energy Efficient Mode, which improves server efficiency by up to 28% compared to the high-performance mode.

On Stocktwits, retail sentiment toward IBM remained in ‘bearish’ territory with ‘normal’ levels of message volume.

IBM stock has added 33% year-to-date and over 64% in the last 12 months.

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