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IBM, Together AI Sign $240M Deal for Nvidia-Powered AI Cluster

Created at 11 Aug · 12:05 PM1 source↑ Market-relevant
IN SHORT

IBM and startup Together AI have agreed to a $240 million multi-year deal to construct a large-scale AI cluster on IBM Cloud. The cluster will utilize Nvidia's HGX B300 systems, featuring Blackwell processors, to provide AI inference for open-source models.

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Key Numbers

$240 milliondeal value between IBM and Together AI
$8.3 billionTogether AI's valuation in July

Who's Involved

IBM
Cloud provider and partner in AI cluster deal
Together AI
Startup building AI platform and partner in deal
Nvidia
Supplier of AI hardware for the cluster

↳ Why This Matters

This significant investment underscores the escalating demand for AI infrastructure, particularly for inference capabilities, and highlights the competitive landscape among cloud providers and chipmakers to meet this demand. The partnership between IBM and Together AI aims to provide a cost-effective solution for businesses utilizing open-source AI models.

Key facts

  • IBM and Together AI have entered into a $240 million multi-year agreement.
  • The agreement is for the construction of a large-scale AI cluster on IBM Cloud.
  • The cluster will utilize Nvidia's HGX B300 systems, including Blackwell processors and Spectrum-X networking.
  • The primary function of the cluster will be AI inference for open-source models.
  • Together AI's platform allows companies to train and run AI workloads on open models at reduced costs.

IBM and startup Together AI have finalized a $240 million multi-year agreement to develop a substantial artificial intelligence cluster hosted on IBM Cloud. The collaboration will leverage Nvidia's advanced HGX B300 systems, incorporating the chipmaker's latest Blackwell processors and Spectrum-X Ethernet networking technology, to facilitate AI inference.

This initiative is driven by the increasing demand for computing power for AI inference, a process crucial for generating responses from trained AI models. Businesses are increasingly turning to open-source AI models to manage costs and mitigate cybersecurity risks associated with proprietary systems from companies like Anthropic, OpenAI, and Meta.

Together AI, based in San Francisco and last valued at $8.3 billion in July, offers a platform designed to enable companies to train and operate AI workloads on open models such as DeepSeek, MiniMax, and Kimi more affordably than closed systems.

Frequently asked questions

The agreement is valued at $240 million and is multi-year.

The cluster will utilize Nvidia's HGX B300 systems, which include Blackwell processors and Spectrum-X Ethernet networking gear.

The cluster is designed to provide AI inference for open-source AI models.

Inference is the process of running trained AI models to generate responses.

What Happens Next

01The AI cluster will be built on IBM Cloud.
02The cluster will be deployed using Nvidia's HGX B300 systems.

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Cadence

How It Developed

IBM and Together AI signed a $240 million multi-year agreement.
The deal aims to build a large-scale AI cluster on IBM Cloud.
The cluster will use Nvidia's HGX B300 systems with Blackwell processors.
The cluster will provide inference for open-source AI models.

Sources

T1
IBM, Together AI ink $240 million deal for Nvidia-powered AI inference clusterReuters

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