At 115 Years Old, Can IBM Survive the AI Era? CEO Arvind Krishna Makes the Case

**SPEAKER_1** (0:00)
So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300,000 can use AI to fill their HR questions, resolving 94 percent of common questions.
Not noise, proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smart business, IBM.

**Imani Moise** (0:34)
Welcome to Tech News Briefing. It's Tuesday, July 28th. I'm Imani Moise for the Wall Street Journal. Tech swag isn't just for employees anymore. We'll explain why companies are getting into the fashion business, and who's actually paying $175 for an OpenAI half-zip sweatshirt. Then, after the worst single day stock loss in IBM's history earlier this month, CEO Arvind Krishna sat down with the Wall Street Journal to lay out the bullcase for the company. He'll explain why he thinks investors have it wrong.
But first, if you think getting your hands on the latest Jordans is hard, try getting a Palantir chore coat. Tech firms are now treating merch releases like a side hustle, selling everything from hoodies to water bottles to rice cookers. The collections have sparked ridicule across the internet. But many products have sold out, proving that while AI is feeling backlash, it's also building a fandom.
Wall Street Journal features editor Jamie Waters looked into OpenAI's latest launch and joins us now to unpack why these companies are suddenly looking like lifestyle brands. So Jamie, why are tech companies launching clothing lines?

**Jamie Waters** (1:51)
We're in a funny moment where obviously, there's this big backlash against tech companies. It's not that there's never been merch for tech companies, but I think these releases, they're very stylized. There's a shoot with the OpenAI merch, the Palantir, chore coats and tennis collection. There's a lot of effort put into these products. It's not just slapping a logo on a T-shirt. In terms of why now, I think in part, it's to support and fuel the enthusiasm for these companies because they have a lot of haters, but they also have a lot of people who are obsessed with them. Also, it's branding. It's free marketing, so you're getting people to wear these clothes around.
I spoke to a branding expert for this story who said that, ads often aren't that effective because the public is often disinterested, very sceptical. This is actually a really effective way to do it, is if you make products that people want to wear or carry around.

**Imani Moise** (2:49)
Can you describe some of the merchandise that they're selling, and how much are people paying for these items?

**Jamie Waters** (2:54)
OpenAI launched this collection recently, and it's a streetwear leaning collection. There's a $100 hoodie which has Codex on it, the coding agent. There's a half zip, appropriate for any finance bro, which has research written on it in cursive. That's $175.
My favorite thing, there's a green basketball that says ChatGBT.

**Imani Moise** (3:17)
OpenAI's clothing line in particular sparked some pretty strong reactions online. How did these launches go over?

**Jamie Waters** (3:24)
Unsurprisingly, the fashion world was very critical. Some people said that this is a very dated aesthetic from five or so years ago.
And then there are a lot of people who were criticizing it because there's obviously so much animosity about AI and what it's doing and how it's shaping the world and what it's going to do to our future. And so there are a lot of people that are like, why are you supporting a brand, a company like this? And also, why do you want to wear it around?

**Imani Moise** (3:50)
Despite all the criticism, these merch lines are selling out. Who's actually buying this stuff? Who's the target audience here?

**Jamie Waters** (3:57)
Yes, they have mostly sold out of them. So, the audience is tech enthusiasts, OpenAI enthusiasts, and OpenAI employees. Those are the biggest customer bases. And yeah, there's a lot of really dedicated supporters of this company. I spoke to two of them. They both work in the industry. One of them compared it to when your favorite band releases new merch.
You know, it's kind of a funny thing to think of people as being like avid supporters of an AI company.

**Imani Moise** (4:27)
Like a tech groupie.

**Jamie Waters** (4:29)
A tech groupie, totally. And then the one guy I spoke to in Texas, he has an OpenAI tattoo and a Codex tattoo on his wrist. He's worn some of the merch from previous limited edition drops. He said quite often, two out of five times when he will leave the house in this, someone will come up to him and say, why are you wearing that? Don't you know what they're doing to our community?