Every IBM Investor Should Keep an Eye on This Number

Core Insights - IBM is rapidly capitalizing on the generative AI market, with significant growth projected in its Watsonx platform's book of business [1][4][7] Group 1: Watsonx Overview - Watsonx was launched in May 2023, following the introduction of ChatGPT and Alphabet's Gemini tool [2] - The platform is designed for large-scale business adoption, offering robust data security and the ability to audit AI-generated statements [3] Group 2: Financial Projections - IBM's generative AI book of business is expected to grow from "low hundreds of millions of dollars" in Q3 2023 to "over $5 billion" by Q4 2024 [4] - The growth trajectory indicates a doubling of the book of business from Q3 to Q4 2023, with projections exceeding $1 billion in Q1 2024 and $2 billion in Q2 2024 [4] Group 3: Revenue Recognition - The book of business metric reflects long-term subscriptions and contracts rather than immediate software sales, similar to deferred revenue [5] - Only 20% of the contracts are directly related to Watsonx software, with the majority stemming from consulting services [6]