TLDR
- IBM and Together AI signed a $240 million multi-year deal to build a large-scale AI inference cluster on IBM Cloud.
- The cluster uses Nvidia HGX B300 systems and Spectrum-X Ethernet networking gear.
- Together AI will use the cluster to run open-source AI models, serving 400 trillion tokens monthly.
- The cluster is expected to go live in Q1 2027.
- IBM stock was up 1.51% on the news; Nvidia gained 0.46%.
IBM and Together AI have signed a $240 million multi-year agreement to build a large-scale AI inference cluster on IBM Cloud powered by Nvidia hardware. IBM stock rose 1.51% on the news, while Nvidia gained 0.46%.
International Business Machines Corporation, IBM
The deal centers on running inference for open-source AI models. Inference is the process of running a trained AI model to generate responses, and it has become one of the biggest drivers of demand for computing power.
The cluster will be built around Nvidia HGX B300 systems, which use Nvidia’s newer Blackwell processors. It will also feature Nvidia Spectrum-X Ethernet networking gear.
IBM says this is the first dedicated, large-scale inference cluster built on IBM Cloud using those systems. Availability is expected in Q1 2027.
Together AI operates a platform that lets developers and enterprises build and deploy AI workloads on open-source models such as DeepSeek, MiniMax, and Kimi. The company reports serving 400 trillion tokens monthly.
Together AI CEO Vipul Ved Prakash said the cluster will let the company bring “production-grade inference to more companies, faster.” He noted that enterprises want frontier-level performance without the cost of closed models.
Alan Peacock, general manager of IBM Cloud, said IBM and Nvidia are delivering “scalable, economical, enterprise-grade AI infrastructure” through the deal.
Open-source AI has been gaining traction as businesses look to cut AI costs. Concerns about cybersecurity incidents involving models from Anthropic, OpenAI, and Meta have also pushed companies toward open alternatives.
The Nvidia Connection
The Blackwell chips at the center of this deal are Nvidia’s latest generation, and Nvidia has positioned them specifically for AI inference workloads. The Spectrum-X networking gear is designed to handle the heavy data traffic that large-scale AI clusters demand.
Together AI said it selected IBM and Nvidia based on their product roadmaps and ability to deliver GPU capacity quickly, at low token cost.
IBM’s Bigger Open-Source Push
This deal fits into a broader pattern for IBM. Earlier this year, the company launched Project Lightwell, a $5 billion commitment with Red Hat focused on helping enterprises secure open-source software using AI tools and over 20,000 engineers.
Pilot participants in that initiative include Bank of America, Goldman Sachs, and JPMorganChase.
The IBM-Together AI deal is also part of a wider IBM-Nvidia collaboration that spans GPU-native data analytics, unstructured data extraction, on-premises and cloud infrastructure, and consulting services.
Together AI recently closed an $800 million Series C financing round at an $8.3 billion valuation. The company was last valued at that figure in July.
IBM confirmed the cluster will be the first of its kind on IBM Cloud using Nvidia HGX B300 systems, with general availability targeted for Q1 2027.
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