Linus Torvalds, the creator of Linux, recently lifted restrictions on using AI to write and review code. He sees AI as just another tool in the developer’s toolbox. Torvalds said, “We make decisions primarily based on technical merit. Not fear of new tools.” He also admitted that AI can be painful to use sometimes because it finds bugs in human-written code.
This openness contrasts with the huge investments companies like Google and IBM are making around AI. Google recently reported its first-ever negative cash flow quarter. This happened mainly because of massive spending on AI infrastructure. Despite that, Google’s search revenue remains huge at $63.3 billion. Its cloud division also grew 23.8% from the first quarter to $24.8 billion.
Google’s search engine has changed a lot since it integrated AI. The company folded its Gemini AI into search, making it a more complete source for many users. But this shift also means Google is building a kind of AI fence around the internet it once championed. Their AI infrastructure costs are huge and continue to grow, which could affect their financial outlook.
IBM’s AI Reality Check
IBM’s CEO Arvind Krishna gave a more measured view on AI’s role in software. He said only 2% of IBM’s software could be replaced by AI-built applications. The rest of IBM’s software focuses on helping clients prepare for AI. It unlocks data in real time and cuts management costs.
IBM’s mainframe business is also facing challenges. Their z17 mainframe hardware saw less customer spending, causing a 42% drop in mainframe revenue last quarter. Software tied to transaction processing declined 9%. Still, software accounted for 45% of IBM’s total revenue in the June quarter.
Starbucks is a notable IBM client, spending about $2 million a year on IBM software. However, they plan to end support for IBM’s Tririga platform by 2027. Tririga and some other older IBM software are seen as at risk due to their age.
What’s Next for AI and Software Development?
IBM expects 6% to 8% software revenue growth in 2026, which is lower than previous double-digit forecasts. Mainframe hardware capacity continues to grow, but software usually lags behind hardware. IBM hopes most deals that slipped in the second quarter will return before year-end.
Meanwhile, AI is shaking up how code gets written and reviewed. It can find bugs humans miss, which can be frustrating but valuable. Linus Torvalds’ acceptance of AI as a tool reflects a broader industry shift. Software development is becoming more intertwined with AI, but the path is still complex.
In short, AI is both a powerful assistant and a challenge. Companies like Google and IBM are investing heavily but face costs and technical hurdles. Developers now have new tools, but the human role in making smart technical decisions remains crucial.
Based on
- “There is a sell-by date on low-code, no-code”: What Tines thinks comes next — thenewstack.io
- Don’t like AI? Linux’s creator says go fork yourself | Business Insider Africa — africa.businessinsider.com
- ‘AI is an enormous tailwind for software companies’: 5 tips for adapting to the new ‘SaS’ model | ZDNET — zdnet.com
- Google just had its first negative cash flow quarter ever due to massive AI spending | Ars OpenForum — arstechnica.com
- IBM’s Krishna argues that AI won’t disrupt software unit — cnbc.com
