CEO Ginni Rometty Tells Bloomberg Businessweek How IBM Plans to Compete With Google

NEW YORK (TheStreet) -- Bloomberg Businessweek's Max Chafkin appeared on Bloomberg TV's "Bloomberg Markets" to discuss his interview with IBM  (IBM) CEO Ginni Rometty on her plans to make Big Blue an artificial intelligence powerhouse in order to compete with younger tech companies.   

"IBM is way older than Google (GOOGL) or Facebook (FB). IBM is 105 years old. And what they're doing is trying to be a bit more startup-y," Chafkin told Bloomberg TV's Lisa Abramowicz.

He interviewed Rometty at the company's Watson headquarters, which featured an open-plan building in downtown Manhattan, Chafkin said.

"They're trying to be 'cool' I guess," he told Abramowicz.

Rometty joined IBM as an engineer in the detroit office in the early 80s and worked her way up to CEO in 2012.

She told Chafkin that she views IBM as "the grown-up company" to the startup tech companies. She said people from Google and Facebook come to IBM because "they really want to have an impact on serious things."

In other words, you can work on an app at Google or you can help move jet planes around at IBM, Chafkin explained.

Employees at IBM Watson, a cognitive system enabling a new partnership between people and computers, is currently working on a system that will help doctor's detect cancer in patients, particularly in places that don't have enough doctors, like in india, she told Chafkin.

Rometty also believes that the company's cognitive computing platform that the company is working on could turn out to be much bigger than Apple's (AAPL) Siri or Amazon.com's (AMZN) Alexa, Chafkin said.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates IBM as a Buy with a ratings score of B+. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers. 

You can view the full analysis from the report here: IBM

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