IBM, Together AI Sign $240M Deal for Nvidia-Powered AI Cluster
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IN SHORT
IBM and Together AI are partnering on a $240 million deal to build a large-scale AI cluster using Nvidia's latest technology on IBM Cloud. This cluster will focus on AI inference for open-source models. Meanwhile, CoreWeave has exceeded revenue expectations due to high demand for its AI cloud services, reporting a significant backlog and capital expenditures. Separately, Oracle and Quantinuum are collaborating to integrate quantum computing into Oracle's cloud platform, aiming to combine quantum capabilities with AI and high-performance computing for enterprise and research use.
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Key Numbers
$240 millionIBM and Together AI deal value
Who's Involved
IBM
Technology company partnering on AI cluster
Together AI
Startup partnering on AI cluster
Nvidia
Technology company providing HGX B300 systems and Blackwell processors
CoreWeave
Company exceeding revenue expectations for AI cloud services
Oracle
Technology company partnering on quantum computing cloud integration
Quantinuum
Company partnering on quantum computing cloud integration
Key facts
IBM and Together AI signed a $240 million multi-year deal.
The deal is for constructing a large-scale AI cluster on IBM Cloud.
The AI cluster will use Nvidia's HGX B300 systems with Blackwell processors.
The cluster will provide AI inference for open-source models.
CoreWeave surpassed Wall Street revenue expectations.
CoreWeave's growth is driven by demand for AI cloud computing services.
CoreWeave reported a significant revenue backlog and substantial capital expenditures in the June quarter.
Oracle and Quantinuum formed a multi-year partnership.
The partnership aims to integrate Quantinuum's quantum computing capabilities into Oracle's cloud platform.
The collaboration will combine quantum computing with Oracle's AI and high-performance computing services.
IBM has entered into a multi-year agreement with startup Together AI valued at $240 million to develop a substantial AI cluster hosted on IBM Cloud. This new cluster will be equipped with Nvidia's HGX B300 systems, which incorporate Blackwell processors, and is intended to facilitate AI inference for open-source models. The initiative highlights the growing demand for specialized AI infrastructure and services.
In parallel, CoreWeave has reported financial results that surpassed Wall Street's projections, attributing its success to strong demand for its AI cloud computing offerings. The company noted a significant revenue backlog and substantial capital expenditures during the June quarter, indicating continued investment and growth in the AI infrastructure sector. This surge in demand underscores the broader trend of companies scaling their AI capabilities.
Furthermore, Oracle and Quantinuum have established a multi-year partnership focused on integrating Quantinuum's quantum computing technologies into Oracle's cloud platform. This collaboration seeks to merge quantum computing power with Oracle's existing AI and high-performance computing services. The goal is to offer advanced solutions to enterprise clients and research institutions, pushing the boundaries of what is possible with combined quantum, AI, and HPC capabilities.
The convergence of these developments—large-scale AI cluster construction, exceeding revenue from AI cloud services, and the integration of quantum computing—signals a significant expansion and diversification within the cloud computing landscape, driven by advancements in AI and quantum technologies.
↳ Why This Matters
IBM has entered into a multi-year agreement with startup Together AI valued at $240 million to develop a substantial AI cluster hosted on IBM Cloud. This new cluster will be equipped with Nvidia's HGX B300 systems, which incorporate Blackwell processors, and is intended to facilitate AI inference for open-source models. The initiative highlights the growing demand for specialized AI infrastructure and services.
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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