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International Business Machines Corporation (NYSE:IBM) In $2 Billion Joint Investment Plans With State Of New York To Create Ai Hub

International Business Machines Corporation (NYSE:IBM) surged towards the end of last month and the stock has been consistent with minimal movement margins. In the last trading session, the stock gained 1.54% to close the day at $136.05.

The movement is a result of the announcement that IBM made that they are planning to invest $2 billion in expansion plans in New York focusing on artificial intelligence.

Expansion plans in the New York campus

The company is planning to create a new Artificial Intelligence hub in their New York campus. The hub located in their SUNY Polytechnic Institute in Albany will be responsible for research and development of computer artificial intelligence chips.

However, the Westchester County-based computer software developer and hardware maker indicated that the establishment of a research and development hub in New York is part of the 2 billion expansions plans as the company looks to grow their reach and business.

Expansion across the state

The state of New York has agreed to support IBM in its expansion plans by contributing close to $300 million. The contribution will go into the purchase as well as the installation of equipment in the research and development hub. Similarly, the company and the state of New York are working jointly to invest approximately $55 million towards the funding research on artificial intelligence in the system of the State University of New York.

The expansion was announced by Governor Andrew Cuomo and the company executives on Thursday. Governor Cuomo said that the creation of the artificial intelligence hub is likely to create hundreds of new jobs for the people of New York. He added that the expansion will position New York as an investment hub with their cutting edge research in artificial intelligence.

The company is equally planning to expand and extend its Semiconductor research partnership with SUNY Institute that is likely to expire by the end of 2021.

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