Tech giant IBM (IBM) recently released Granite 4.0, which is a new set of open-source AI models that are designed to be faster, cheaper, and more secure than traditional systems. Unlike other tech companies that focus on building extremely large models with hundreds of billions or even trillions of parameters, IBM is taking a different approach. Indeed, it’s prioritizing efficiency over size by using a hybrid architecture that lowers memory usage by over 70% while still delivering strong performance.
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More specifically, Granite 4.0 combines transformer layers with Mamba-2, a new type of AI sequence model. While traditional transformers are powerful, they become slow and expensive when handling long documents or many users at once. Mamba-2, on the other hand, processes information more efficiently by scaling linearly instead of quadratically, which helps cut memory demands significantly. As a result, IBM has created models that perform well while still being practical to run.
In addition, the Granite 4.0 family includes several models that are tailored to different needs. For example, the largest, Granite-4.0-H-Small, has 32 billion parameters and is meant for tasks like customer service automation. Meanwhile, smaller models like H-Tiny and H-Micro are made for edge devices and specific tasks, with even more compact versions, called Nano models, coming soon. It is also worth noting that these models are efficient enough to run on laptops and Raspberry Pi devices.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on six Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $293.58 per share implies 1.4% upside potential.
