(Reuters) — On Wednesday, IBM exceeded analysts’ second-quarter sales projections and improved its annual growth prediction for its software unit, citing increased AI-related investment by clients seeking to deploy the technology.

The business has focused on growing its Watsonx platform, which allows customers to install chatbots and improve code for AI systems, as well as releasing its Granite family of AI models open-source to help popularize its AI services.

Big Blue’s stock surged almost 3% in extended trading, adding to its year-to-date gains of roughly 12% from a rally in AI-related equities.