IBM Ventures Into Open-Source AI With 'Granite' Models, Strikes Training Deal With Saudi Arabia For Arabic AI System

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IBM (NYSE:IBM) has announced that it will be releasing a new set of artificial intelligence models as open-source software. Additionally, the company has secured a deal with Saudi Arabia to aid in the training of an AI system in Arabic.

What Happened: IBM, based in Armonk, New York, has decided to take a different approach to AI monetization than its competitors. While companies like Microsoft Corp (NASDAQ:MSFT) are keeping their AI models under tight wraps and charging for access, IBM is opting for open access to its models, Reuters reported.

The company has now introduced its “Granite” family of AI models for customization by businesses.

The Granite tools are designed to help software developers write code more efficiently. IBM offers a paid tool, Watsonx, to run the models smoothly within a data center after customization, thereby generating revenue from the models.

IBM’s CEO, Arvind Krishna, stated, “We believe we’re in the early days of generative AI models. Competition at the end of the day is good for buyers. We also want to be safe and responsible.”

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Moreover, the Saudi Data and Artificial Intelligence Authority will employ Watsonx to train its “ALLaM” Arabic language model, expanding IBM’s language capabilities to include multiple Arabic dialects.

Why It Matters: This move by IBM to make its AI models open source comes in the wake of a recent controversy surrounding Reddit‘s decision to partner with OpenAI‘s ChatGPT. The move sparked a comparison to the “infamous IBM Watson fiasco,” raising concerns about potential pitfalls.

Earlier in April, IBM’s CEO, Arvind Krishna, highlighted the increasing importance of technology in the global economy, particularly in driving productivity and enhancing customer experience. This comes as the company's AI bookings surpass the $1 billion mark, with more clients expected to transition from experimenting to deploying AI at scale for productivity gains.

IBM’s decision to make its AI models open source also aligns with the global trend of increasing AI adoption. This is particularly relevant in Saudi Arabia, where the need for data centers and semiconductors is nudging the country towards historic U.S. talks.

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