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IBM to Acquire HRL Laboratories to Power the Future of Quantum

(Neutral)
(Positive)

IBM (NYSE: IBM) signed a definitive agreement to acquire HRL Laboratories, a privately held R&D institution jointly owned by Boeing and General Motors, which will continue partnering with IBM on quantum applications. The deal, with undisclosed financial terms, is expected to close by the end of Q3 2026, subject to customary conditions and regulatory approvals.

According to IBM, HRL’s strengths in silicon‑spin qubits, quantum sensing, advanced materials, and high-speed electronics will complement IBM’s superconducting-qubit roadmap toward large-scale, fault-tolerant quantum computers. HRL is expected to support IBM’s plans for future systems such as IBM Quantum Starling by 2029, projected to run 100 million quantum operations, and the later Blue Jay platform, projected at 1 billion operations. The acquisition also creates opportunities to collaborate with Anderon, IBM’s planned quantum wafer foundry, including potential development of spin-qubit manufacturing to help industrialize quantum technologies.

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Positive

  • Definitive agreement to acquire HRL Laboratories adds silicon-spin qubit and sensing expertise to IBM’s quantum program
  • HRL’s quantum materials and advanced manufacturing portfolio broadens IBM capabilities in next-generation computing and mission-critical systems
  • Roadmap targets IBM Quantum Starling by 2029, projected at 100 million quantum operations and 20,000x current power
  • Planned Blue Jay system projected to deliver 1 billion quantum operations in the mid-2030s
  • Potential integration with Anderon quantum wafer foundry to develop scalable spin-qubit manufacturing and faster learning cycles

Negative

  • Transaction closing remains subject to customary conditions and regulatory approvals, creating execution and timing risk
  • Financial terms of the HRL acquisition were not disclosed, limiting investor visibility on deal valuation and return

News Market Reaction – IBM

+0.43%
3 alerts
+0.43% Session close to close
$193.40B Market Cap
0.5x Rel. Volume

In the Jul 23 session, IBM gained 0.43%, reflecting a mild positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

IBM's tag-specific acquisition history recorded an average 0.68% 24-hour move across four events. Th...
Analysis

IBM's tag-specific acquisition history recorded an average 0.68% 24-hour move across four events. That record frames HRL as another capability-focused deal, with undisclosed consideration and regulatory approvals as key items to watch.

Key Figures

IBM Quantum Starling delivery: 2029 Starling power: 20,000 times more powerful Starling quantum operations: 100 million quantum operations +4 more
7 metrics
IBM Quantum Starling delivery 2029 IBM quantum roadmap
Starling power 20,000 times more powerful Compared with today's quantum computers
Starling quantum operations 100 million quantum operations Planned Starling capability
Blue Jay timing mid-2030s Planned successor to Starling
Blue Jay quantum operations 1 billion quantum operations Projected Blue Jay capability
Anderon announcement May 2026 IBM quantum wafer foundry announcement
Expected transaction closing end of the third quarter of 2026 Subject to customary closing conditions and regulatory approvals

Previous Acquisition Reports

4 past events · Latest: Oct 15 (Positive)
Same Type Pattern 4 events
Date Event Sentiment 24h Move Catalyst
Oct 15 Cognitus acquisition Positive +1.7% IBM signed a Cognitus acquisition agreement; financial terms were not disclosed and closing remained subject to approvals.
Feb 27 HashiCorp acquisition Positive -1.0% HashiCorp acquisition completed for $35 per share, representing a $6.4 billion enterprise value.
Jan 16 AST acquisition Positive +1.2% Applications Software Technology acquisition announced; financial terms were not disclosed, with closing expected in Q1 2025.
Sep 09 Accelalpha acquisition Positive +0.9% Accelalpha acquisition announced to expand Oracle consulting expertise, with closing expected in fourth quarter 2024.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Three of four tag-matched IBM acquisition events aligned with positive 24-hour reactions, while one diverged.

Key Terms

silicon-spin qubits, quantum sensing, superconducting qubits, qubit interconnects, +1 more
5 terms
silicon-spin qubits technical
"HRL's expertise in silicon-spin qubits and quantum sensing will strengthen"
Qubits made from the spin of electrons or nuclei in silicon, used as the basic information units in certain quantum computers. Like tiny compass needles embedded in a silicon chip, their spin states encode quantum bits that can be manipulated and read using voltages and microwave pulses; they matter to investors because they promise compatibility with existing semiconductor manufacturing and potential pathways to scale up quantum processors, which affects the commercial prospects of quantum hardware.
quantum sensing technical
"HRL will also enable IBM to innovate in and industrialize promising technologies such as quantum sensing"
Quantum sensing uses the unusual behavior of tiny particles to measure physical quantities—like magnetic fields, time, or motion—with far greater precision than conventional sensors. For investors, it matters because this leap in sensitivity can enable new products and markets (better medical imaging, navigation without GPS, or faster material testing), potentially creating high-growth opportunities for companies that commercialize reliable, scalable devices.
superconducting qubits technical
"Superconducting qubits and spin qubits both leverage state-of-the art silicon fabrication."
Superconducting qubits are tiny circuits cooled to near absolute zero that use electrical currents to store and process quantum information, similar to a coin that can behave like both heads and tails at once. They matter to investors because they are one of the leading hardware approaches for building powerful quantum computers that could transform industries—so progress, production scaling, or setbacks in this technology can strongly influence the value of firms and supply chains tied to computing, materials and cloud services.
qubit interconnects technical
"Combined with additional capabilities in cryogenics, control electronics, qubit interconnects, and packaging"
Qubit interconnects are the physical and electrical links that let qubits — the basic units of quantum computers — communicate, share quantum information, and form larger processing networks. Like the roads and bridges between neighborhoods, these connections determine how many qubits can work together, how fast they exchange information, and how much noise or error is introduced, so they influence a quantum machine's practical size, reliability, and performance.
fault-tolerant quantum computers technical
"IBM's roadmap to deliver the world's first large-scale, fault-tolerant quantum computers"
Fault-tolerant quantum computers are machines designed to run quantum calculations reliably by detecting and correcting the tiny errors that naturally occur in quantum bits, allowing the machine to keep working accurately even when parts are imperfect. For investors, this matters because achieving practical fault tolerance is the tipping point that could unlock widely useful quantum applications—accelerating drug discovery, materials design, and complex optimization—and turning quantum research from speculative hope into scalable commercial opportunities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HRL's expertise in silicon-spin qubits and quantum sensing will strengthen and extend IBM's world-leading quantum computing mission

ARMONK, N.Y. and MALIBU, Calif., July 23, 2026 /PRNewswire/ -- IBM (NYSE: IBM) today announced it has signed a definitive agreement to acquire HRL Laboratories, LLC (HRL), a flagship research and development institution. HRL is a private company jointly owned by Boeing and General Motors. Both Boeing and GM will continue to partner with IBM on quantum applications and advanced technology development following the transaction.

IBM Corporation logo.

HRL's advanced expertise in silicon-spin qubit engineering will complement and extend IBM's long-term mission to scale increasingly powerful quantum computers and accelerate its quantum vision.  Superconducting qubits and spin qubits both leverage state-of-the art silicon fabrication. This shared foundation is amongst the reasons why these two modalities offer credible paths to scaling quantum technologies.

"The HRL team will help IBM push even farther forward toward the frontiers of quantum innovation," said Jay Gambetta, IBM's Director of Research and IBM Fellow. "This talented group of researchers brings a broad portfolio of technologies that will strengthen IBM's long-term plans to deliver useful quantum computing to the world, bringing together advances across quantum computing, quantum sensing, and quantum networking to enable the applications of the future." 

"Joining IBM is the natural next chapter for what we have built at HRL, where our team has dedicated years to exploring paths to how future quantum computers could be built at scales that today seem impossible," said Rob Vasquez, President and Chief Executive Officer at HRL "We now look forward to leveraging IBM's industry leadership and working alongside their world-class talent on fundamental infrastructure to take this vision forward. Additionally, our cutting-edge physical and information science innovations will combine with their advanced research capabilities to deliver an unmatched suite of technology solutions for our commercial and government customers."

HRL will also enable IBM to innovate in and industrialize promising technologies such as quantum sensing and drive new research into quantum materials. This includes ultra precise quantum sensors capable of detecting subtle physical phenomena and capturing finely tuned measurements for life sciences, navigation, defense, and scientific applications. Combined with additional capabilities in cryogenics, control electronics, qubit interconnects, and packaging, IBM anticipates that HRL's technical breakthroughs will help fuel its quantum program for decades to come.

Additionally, HRL has developed innovations in novel quantum materials that have the potential to unlock better semiconductors and more sensitive sensors – all of which can optimize the performance and scalability of a wide range of quantum technologies.

Beyond its leadership in quantum computing, HRL brings deep expertise in advanced sensors, high-speed and high-power communications, electronics, advanced manufacturing, and materials science, developed through decades of research and development for both commercial and U.S. government customers. HRL's broad technology portfolio will complement IBM's innovation leadership and help accelerate the development of next-generation computing, communications, and mission-critical systems.

Advancing Quantum Computers for Generations to Come

IBM continues to define the direction for the industry with superconducting qubit-based architectures, including breakthroughs in error correction and new algorithms enabling quantum computers to run harder problems more efficiently. IBM's roadmap to deliver the world's first large-scale, fault-tolerant quantum computers is clear and on course. This includes delivering IBM Quantum Starling by 2029, which will be 20,000 times more powerful than today's quantum computers and capable of running 100 million quantum operations. In the mid-2030s, Starling will be followed by the even more powerful Blue Jay quantum computer, projected to be capable of 1 billion quantum operations.

As IBM looks to further extend quantum computing, HRL will bring robust knowledge of silicon‑based spin qubit platforms and surrounding infrastructure that could offer new insights into how to best scale quantum computers into the next decade.

In May 2026, IBM further expanded its global quantum leadership when the company announced it would establish Anderon, the world's first pure-play quantum wafer foundry. As a standalone IBM company, Anderon is being created with the support of the U.S. Department of Commerce to enable scalable, consistent, and agile manufacturing for a broad range of quantum computing modalities and companies. The acquisition of HRL offers an opportunity to partner even more closely with Anderon, including potential plans to develop spin qubit manufacturing to scale quantum manufacturing and enable faster learning cycles.

Financial details of the transaction were not disclosed, and IBM's acquisition of HRL is subject to customary closing conditions and regulatory approvals. The transaction is anticipated to close by the end of the third quarter of 2026.

Media Contact:
Erin Angelini
IBM
edlehr@us.ibm.com 

 

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SOURCE IBM

FAQ

What did IBM (IBM) announce about acquiring HRL Laboratories on July 23, 2026?

IBM announced a definitive agreement to acquire HRL Laboratories, a Boeing- and GM-owned research institution, to expand its quantum computing capabilities. According to IBM, HRL will add silicon-spin qubit, quantum sensing, materials, and advanced electronics expertise to support IBM’s long-term quantum roadmap.

How will HRL Laboratories strengthen IBM’s quantum computing strategy (IBM)?

HRL will contribute silicon-based spin qubit platforms, quantum sensing, and novel quantum materials that complement IBM’s superconducting-qubit approach. According to IBM, this combination is intended to improve scalability, sensing performance, and supporting infrastructure such as cryogenics, control electronics, interconnects, and packaging for future quantum systems.

When is IBM’s acquisition of HRL Laboratories expected to close and are there conditions?

IBM expects the HRL acquisition to close by the end of the third quarter of 2026, subject to customary closing conditions and regulatory approvals. According to IBM, these conditions must be satisfied before completion, so the timeline and outcome are not fully guaranteed.

What future quantum systems are mentioned in IBM’s HRL acquisition announcement (IBM)?

IBM highlighted its roadmap including IBM Quantum Starling by 2029, targeted at 100 million quantum operations and about 20,000 times today’s power. According to IBM, Starling is planned to be followed in the mid-2030s by the more powerful Blue Jay, projected at 1 billion operations.

How does the HRL deal relate to Anderon, IBM’s quantum wafer foundry?

IBM stated that acquiring HRL creates an opportunity to partner more closely with Anderon, its planned quantum wafer foundry. According to IBM, potential plans include developing spin qubit manufacturing at Anderon to scale quantum manufacturing and accelerate learning cycles across multiple quantum modalities.

Will Boeing and General Motors remain involved with HRL technologies after IBM’s acquisition?

Boeing and General Motors currently jointly own HRL, but will not retain ownership after the IBM transaction closes. According to IBM, both companies are expected to continue partnering with IBM on quantum applications and advanced technology development following the acquisition.

What capabilities beyond quantum computing does HRL bring to IBM (IBM)?

HRL adds expertise in advanced sensors, high-speed and high-power communications, electronics, advanced manufacturing, and materials science. According to IBM, these capabilities, developed for commercial and U.S. government customers, should complement IBM’s innovation leadership in next-generation computing, communications, and mission-critical systems.