IBM Targets Real-Time AI With New z17 Mainframe Rollout

Tech giant IBM IBM stock is trading higher on Tuesday after the company launched its latest mainframe, the IBM z17.

The system blends powerful artificial intelligence features across hardware and software to enhance business operations on a large scale.

IBM z17 arrives with a range of innovations designed to address AI workloads and real-time processing needs. Built on the new IBM Telum II processor, the z17 is capable of executing over 450 billion AI inferencing tasks per day, achieving a response latency as low as one millisecond.

"The industry is quickly learning that AI will only be as valuable as the infrastructure it runs on," said the general manager of IBM Z and LinuxONE, IBM, Ross Mauri.

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"With z17, we're bringing AI to the core of the enterprise with the software, processing power, and storage to make AI operational quickly.

Engineered for organizations looking to embed AI deeply into their operations, the z17 supports more than 250 use cases. These include fraud prevention in retail, streamlining customer interactions through chatbots, evaluating credit risk, and aiding diagnostic imaging in healthcare.

The new system features a second-generation AI accelerator embedded in its core processor, which significantly increases computing speed and cache memory.

Later this year, IBM plans to launch the Spyre Accelerator, a PCIe card to extend AI computing power even further, with a focus on supporting generative AI and intelligent assistants tailored to enterprise use.

IBM is pairing the z17 with AI-driven software like Watsonx Assistant and Watsonx Code Assistant. These tools help automate development and IT operations, while integration with IBM Z Operations Unite enables real-time monitoring and incident resolution powered by AI insights.

As cybersecurity threats evolve, the z17 addresses data protection through advanced features. This includes integration with IBM Vault powered by HashiCorp for secrets management and tools for automated detection of data anomalies using natural language processing and AI.

Clients deploying IBM z17 can expect support through IBM's AI-augmented Technology Lifecycle Services. Meanwhile, the DS8000 storage system has been optimized to match z17's performance, enabling data-heavy industries to manage workloads securely and efficiently.

IBM z17 will be available starting June 18, 2025. The Spyre Accelerator is expected to follow in the fourth quarter of the year.

Wedbush analyst Daniel Ives said IBM is well positioned to benefit from the AI spending phase, which now makes up about 12% of many IT budgets.

Price Action: IBM shares traded higher by 1.55% at $229.29 in premarket at last check Tuesday.

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