tl;dr: IBM CEO Arvind Krishna told investors that open-weight models have closed the gap with closed frontier models, now delivering roughly 90% of the performance at 10-25% of the token cost, making them attractive for most enterprise tasks. He expects booming demand for on-prem AI infrastructure (deployable in just 2-3 racks), though enterprises will struggle with the engineering expertise needed—an opportunity IBM intends to fill with software and Spyre accelerator sales. IBM's Q3 revenue hit $17.1B (up 5%), with Red Hat growing 11% and its virtualization products already landing $800M in deals.