Start-ups that are selected to be part of the program, which is called IBM Global Entrepreneur Program for Cloud Startups, will also receive technical support, have access to a network of mentors and get introductions to some of IBM's enterprise clients.
IBM is focusing on recruiting start-ups that are less than five years old and have already raised some funds from angel investors, accelerators or venture capitalists, according to a Wall Street Journal report. The company also aims to have applicants approved in 48 hours.
With a string of poor earnings lingering over its head, IBM has been under pressure to reinvent its business. In October, the company disposed of its expensive chip making division. It even paid $1.5 billion to GlobalFoundries to take the business off of its hands.
Read More IBM sheds hardware image by selling chip business
Part of the company's new business strategy is heavy investment in the cloud.
Last year, the company bought SoftLayer Technologies for a reported $2 billion and has since continued to grow its reach in the cloud space.
In October, Tencent, an Alibaba competitor, announced it was partnering with IBM on a new cloud software business targeting small and medium size businesses in the healthcare space and companies focused on "smart cities."
Read More Alibaba rival signs cloud software deal with IBM
The company also recently partnered with Microsoft to offer a hybrid cloud computing solution that allows both companies' enterprise software to be available on both cloud platforms.
Earlier this month IBM also announced the launch a new security service for the cloud that provides its corporate clients with a portfolio of tools built to keep the company's network safe.
—By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.