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via finance.yahoo.comTech & AI

IBM CEO says open AI models are 90% as good as frontier models: 'Why pay 10x more?'

FROM THE WIRE · FINANCE.YAHOO.COM

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. International Business Machines Corp. Chairman and CEO Arvind Krishna questioned enterprise spending on frontier artificial intelligence models, stating that open-weight…

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MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: expected bearishComments on AI model costs may weigh on expectations for frontier model providers and IBM.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
  1. 01CEO Arvind Krishna spoke during the third-quarter 2026 earnings call.
  2. 02Krishna said open-weight models cost 10% to 25% of the token price of frontier models.
  3. 03He stated open models now offer nearly equal performance at a fraction of the price.
NEWS IMPACT AND MARKET REACTIONChange since the story · reference
International Business Machines CorporationIBMStock253.56 USDMarket closedtoday +0.58%Neutral
Impact and summary are estimates by the News Impact AI agent, not financial advice.Open in Markets

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