IBM inks $240m AI inference cluster deal with Together AI

IBM and Together AI have signed a $240 million multi-year agreement to build a large-scale inference cluster that will be powered by Nvidia systems on IBM Cloud.

The system will use Nvidia HGX 300 and Nvidia Spectrum-X Ethernet networking, and is expected to be available in the first quarter of 2027.  

Together AI will use this cluster to provide open-source model inference so enterprises can deploy and scale AI workloads faster and more efficiently. 

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The startup recently raised an $800 Series C financing round at an $8.3 billion valuation to expand its AI native cloud and its platform capabilities across inference, training, fine tuning, and agentic workflows. 

“Enterprises want the performance of the best frontier models without the closed-model price tag, and that only works if the infrastructure underneath is fast and reliable at scale,” said Together AI CEO Vipul Ved Prakash. 

“Working alongside IBM with Nvidia gives us that foundation. This cluster lets us bring production-grade inference to more companies, faster, and it’s a big step in our push to make open-source AI the obvious choice for enterprises.”

New generation of AI power

According to Nvidia, the infrastructure will be able to deliver 30 times more AI factory output compared to previous generations.

“AI factories are becoming essential enterprise infrastructure – like electricity and telecommunications – turning compute and data into intelligence,” said Dion Harris, Senior Director at Nvidia HPC and AI Infrastructure Solutions. 

“With Nvidia HGX B300 systems and Nvidia Spectrum-X Ethernet networking on IBM Cloud, IBM and Together AI will deliver an accelerated computing platform to help enterprises deploy open-source AI with the performance, efficiency and scale required for real-time AI services.”

This deal is the latest in a series of joint initiatives between IBM and Nvidia that aims to deliver AI across infrastructure and software.

In March, IBM and Nvidia entered into an expanded partnership to “help organisations operationalise AI at scale”.

“Enterprises are in a race to adopt agentic AI at scale to drive real business outcomes,” said Alan Peacock, IBM Cloud General Manager.

“IBM and Nvidia are delivering scalable, economical, enterprise-grade AI infrastructure that can help Together AI accelerate innovation for the next generation of AI infrastructure.”

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