IBM acquires Seek AI, launches Watsonx Labs to scale enterprise AI

IBM said it will acquire New York-based startup Seek AI to strengthen its enterprise data tools, alongside launching Watsonx AI Labs, a new innovation hub focused on accelerating AI adoption and supporting next-generation enterprise developers.

Watsonx AI Labs, based at IBM’s new One Madison offices in Manhattan, will expand the company’s global network of engineering centers by bringing together researchers, startups, and enterprise partners to co-develop agentic AI solutions, the company said.

The lab aims to help clients extract practical value from AI by fostering collaboration between IBM engineers and external innovators.

“By anchoring this mission in New York City, we are investing in a diverse, world‑class talent pool and a vibrant community whose innovations have long shaped the tech landscape,” Ritika Gunnar, GM of data & AI at IBM, said in a statement.

In a LinkedIn post, Seek AI CEO and founder Sarah Nagy said the company would serve as the foundation of Watsonx AI Labs, where it plans to scale its platform, deploy mission-critical solutions for IBM clients, support the next generation of AI developers, and significantly expand its team.

Deepening AI strategy

The launch of the new Watsonx AI Labs and the acquisition of Seek AI signal a deeper commitment from IBM to enterprise-grade AI, building on its existing focus areas of hybrid cloud, orchestration, and governance, analysts said.

Seek AI specializes in converting natural language questions into database queries to generate business insights, particularly valuable in industries with strict compliance requirements, such as financial services and e-commerce.

“By integrating Seek AI’s explainable, natural language query capabilities into the Watsonx ecosystem, IBM is set to make complex data more accessible across highly regulated sectors such as finance, healthcare, and government,” said Prabhu Ram, VP of the industry research group at Cybermedia Research.  “This move not only accelerates IBM’s ability to deliver compliant, scalable AI solutions, but also strengthens its position as a catalyst for collaborative AI innovation — exemplified by the launch of the new Watsonx AI Labs in New York City.”

The acquisition also comes amid surging enterprise investment in AI. IDC estimates that global spending on technology to support AI strategies will reach $337 billion in 2025 and more than double to $749 billion by 2028.

“Also, according to IDC, 53% of enterprises plan to start with a pretrained model and augment it with enterprise data,” said Sharath Srinivasamurthy, associate vice president of research at IDC. “When dealing with enterprise data, security becomes paramount. A credible solution that combines Seek AI’s capabilities with IBM Watsonx’s governance framework would help position AI solutions more effectively for regulated industries.”

Building AI talent pipelines

Watsonx AI Labs also offers IBM a pipeline for emerging talent, as the company looks to partner with startups, scale-ups, and large enterprises to accelerate AI development while sharing costs and risks.

“This collaborative model reflects IBM’s strategy to integrate emerging AI technologies into enterprise workflows, accelerating adoption and driving innovation,” said Vershita Srivastava, practice director at Everest Group. “IBM also plans to work closely with local universities and research institutions, offering students and researchers the chance to collaborate on real-world AI projects.”

Analysts say location matters too, with New York offering a distinct advantage in enterprise engagement.

“While most of the attention on technology is focused on Silicon Valley, New York City is home to major corporations,” Srinivasamurthy added. “Being closer to enterprises and enterprise users helps IBM co-create solutions, particularly for industry-relevant use cases.”