International Business Machines Corp (NYSE:IBM) shares rose nearly 3% in late-morning trading on Tuesday after the company announced a strategic partnership with Anthropic to use its artificial-intelligence (AI) models in IBM software.
Under the terms of the agreement, IBM will integrate Anthropic’s Claude, a family of large language models, into select IBM software products, starting with IBM's new AI-first integrated development environment (IDE), designed with advanced task generation capabilities for enterprise software development lifecycles (SDLC).
IBM said the integration of Claude into its existing software is expected to help businesses to improve productivity and cut costs.
"This partnership enhances our software portfolio with advanced AI capabilities while maintaining the governance, security, and reliability that our clients have come to expect," IBM senior vice president, software Dinesh Nirmal said in a statement.
IBM stock, which hit a new record high on Tuesday, has gained about 35% year to date to its current price of $296.13.