They were media events that lead to powerful media events, which in turn lead to investors pumping money into the stock price. Shareholder value is the only real profit. Watson being on Jeopardy no doubt garnered investment dollars from thousands of wealthy retirees. Those toy projects earned their keep many times over.
But as someone who doesn't know the tech, but worked in the media side as a vendor at the tail end making marketing materials for IBM during their "Internet of Things" craze, I couldn't help but feel, as a laymen, so excited at what IoT (and other crazy developments like Watson) could be, because apparently IBM at the time was hitting up a buncha different vendors and just blanketing a certain sector of the marketing industry with jobs. Any colleagues I talked to were on some IBM marketing job or another.
Fast forward to about 7 years later, and I still have no clue what IoT is or does, but I sure saw a buncha marketing material flood mainstream media for a minute, with IBM saying it'd be revolutionary!
Just makes me think about web3/ crypto/ NFT's, how it's coming down hard with media campaigns, claims, yada yada. Definitely seems about hype & optics, just like IBM in their IoT media carpet bombing era.
https://www.macrotrends.net/stocks/charts/IBM/ibm/market-cap
It is even worse than it looks considering the opportunity cost of not sticking the money in basically risk free and cost free SP500 ETFs. Even Warren Buffett took a huge bath on IBM.
That can't be the reason. Over the last 5 years, IBM underperformed the S&P 500 by 16%/year.
A huge part of it was the incompetence with which IBM pushed us to use Watson modules in our products, which I could see 6 years ago were worse than open source AI options and had no application to Weather Underground's services. They were basically toy projects being advertised as ground-breaking AI. I'm not surprised at all to see Watson finally collapsing under the weight of its vacuous claims.