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


The logo of IBM is displayed over a booth at the Web Summit digital trade show in Vancouver, British Columbia, Canada, May 12, 2026. REUTERS/Chris Helgren

Aug 11 (Reuters) - IBM ⁠and startup Together AI have signed a $240 ⁠million multi-year agreement to build a ‌large-scale artificial intelligence cluster on IBM Cloud using Nvidia systems, the companies said on Tuesday.

The cluster will provide inference ​for open-source AI models, which ⁠have gained traction ⁠as businesses seek to rein in AI costs ⁠and ‌weigh concerns about cybersecurity incidents involving models from Anthropic, OpenAI and Meta.

Inference, ⁠the process of running trained AI models ​to generate ‌responses, has become one of the largest ⁠drivers of ​demand for computing capacity, prompting cloud providers and chipmakers to spend billions of dollars expanding AI ⁠infrastructure.

The cluster on IBM Cloud ​will use Nvidia's HGX B300 systems, which link the chipmaker's newer Blackwell processors, and its Spectrum-X ⁠Ethernet networking gear. Nvidia has said the Blackwell chips are optimized for AI inference.

San Francisco-based Together AI's platform lets companies train and ​run AI workloads on open ⁠models such as DeepSeek, MiniMax and Kimi at ​lower costs than closed ‌systems. It was last valued ​at $8.3 billion in July.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Tasim Zahid)

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