Key Highlights International Business Machines and Together AI announced a multi-year $240 million partnership to develop a massive AI inference cluster within IBM Cloud. The infrastructure l
International Business Machines has partnered with Together AI in a substantial $240 million multi-year collaboration to construct a massive AI inference cluster within IBM Cloud, utilizing cutting-edge Nvidia hardware. Following the announcement, IBM shares climbed 1.51%, while Nvidia stock advanced 0.46%.
International Business Machines Corporation, IBM
The partnership focuses specifically on inference operations for open-source artificial intelligence models. Inference represents the computational phase where trained AI models execute and produce outputs, emerging as a primary catalyst for expanded computing infrastructure demand.
The infrastructure will be constructed using Nvidia HGX B300 systems, incorporating Nvidia’s advanced Blackwell processor architecture. Additionally, the cluster includes Nvidia Spectrum-X Ethernet networking technology.
According to IBM, this represents the inaugural dedicated, enterprise-scale inference cluster deployed on IBM Cloud utilizing these specific systems. The platform is scheduled to become operational during the first quarter of 2027.
Together AI manages a comprehensive platform enabling developers and businesses to construct and implement AI applications using open-source models including DeepSeek, MiniMax, and Kimi. The organization currently processes approximately 400 trillion tokens on a monthly basis.
Vipul Ved Prakash, CEO of Together AI, stated the cluster will enable the organization to deliver “production-grade inference to more companies, faster.” He emphasized that enterprises seek cutting-edge performance capabilities while avoiding the expenses associated with proprietary closed models.
IBM Cloud’s general manager, Alan Peacock, highlighted that IBM and Nvidia are providing “scalable, economical, enterprise-grade AI infrastructure” through this collaboration.
Open-source artificial intelligence continues gaining momentum as organizations seek to reduce AI expenditures. Security vulnerabilities affecting models from Anthropic, OpenAI, and Meta have further motivated enterprises to explore open-source alternatives.
The Blackwell processors central to this partnership represent Nvidia’s most recent generation, specifically engineered for AI inference operations. The accompanying Spectrum-X networking infrastructure is purpose-built to manage the substantial data throughput requirements of large-scale AI deployments.
Together AI indicated its selection of IBM and Nvidia stemmed from their technology development plans and capability to provide GPU capacity rapidly while maintaining competitive token pricing.
This agreement aligns with IBM’s broader strategic direction. Earlier in the year, the technology giant unveiled Project Lightwell, a $5 billion initiative developed with Red Hat designed to assist enterprises in securing open-source software through AI-powered tools and more than 20,000 engineering professionals.
Early participants in that program include major financial institutions such as Bank of America, Goldman Sachs, and JPMorganChase.
The IBM-Together AI agreement also extends an existing comprehensive IBM-Nvidia partnership encompassing GPU-optimized data analytics, unstructured data processing, hybrid cloud and on-premises infrastructure, and professional consulting services.
Together AI recently completed an $800 million Series C funding round, achieving an $8.3 billion company valuation. This valuation was consistent with the company’s assessment from July.
IBM has verified this cluster represents the first deployment of its kind on IBM Cloud featuring Nvidia HGX B300 systems, with general availability planned for the first quarter of 2027.
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