IBM Sells x86 Server Division to Lenovo

IBM's decision to sell its x86 server division to Lenovo for $2.1 billion marked a pivotal shift in the company's strategy regarding its hardware offerings. The x86 architecture, widely used in personal computers and servers, had become increasingly competitive, prompting IBM to refocus its resources on its Power ISA-based servers, which are designed for high-performance computing environments. This sale allowed Lenovo to enhance its position in the global server market, leveraging IBM's established technology and customer base. The acquisition was part of Lenovo's broader strategy to expand its enterprise solutions and compete with other major players in the technology sector. Following the sale, IBM continued to innovate in the areas of cloud computing and artificial intelligence, emphasizing its commitment to software and services rather than hardware.