1840 ET [Dow Jones]--Conversations around "sovereign AI," referring to enterprise AI systems that run on private clouds or on-premise infrastructure, have picked up this year, IBM CEO Arvind Krishna tells analysts on a Wednesday call. Open-weight models have improved such that businesses are able to get roughly 90% of the effectiveness of a frontier AI model with 10% to 25% of the costs, Krishna says, adding that such models are sufficient for the "vast majority" of automatable business tasks. "I believe this is going to turn into a tailwind for many players in the industry, certainly the infrastructure and semiconductor players, but also for those of us who help enterprises deploy in a secure and in a private way," Krishna says.