What's Happening?
IBM and Together AI have signed a $240 million multi-year agreement to build a large-scale AI inference cluster on IBM Cloud using NVIDIA hardware. The cluster will utilize NVIDIA HGX B300 systems and Spectrum-X Ethernet networking gear, marking IBM's
first dedicated large-scale cluster for inference on its cloud platform. Together AI will use the cluster to run inference on open-source AI models, serving 400 trillion tokens monthly. The deal is part of IBM's broader collaboration with NVIDIA, focusing on AI infrastructure and consulting services.
Why It's Important?
This agreement positions IBM to capitalize on the growing demand for AI infrastructure, transitioning from software sales to recurring cloud infrastructure revenue. The partnership with Together AI allows IBM to tap into the AI market's expansion, particularly in inference, which is becoming a major driver of computing demand. For NVIDIA, the deal reinforces its hardware's role in AI development, potentially boosting its market presence. The collaboration could significantly impact IBM's cloud growth, offering a competitive edge in the AI sector.
What's Next?
The AI inference cluster is expected to be operational by the first quarter of 2027, supporting Together AI's business model. IBM's partnership with NVIDIA includes plans to integrate NVIDIA's data and inference tools into IBM's Red Hat AI Factory stack, potentially leading to further innovations and collaborations. The deal could pave the way for IBM to explore additional opportunities in the neocloud market, expanding its influence in the AI sector.
