IBM Signs $240M Deal for Nvidia-Powered AI Cluster

IBM has agreed to a $240 million, multi-year deal with startup Together AI to build a large AI cluster powered by Nvidia systems.The San Francisco-based vendor provides infrastructure for companies to train and run AI workloads using open models, including DeepSeek, MiniMax and Kimi.Revealed on Tuesday, the proposed cluster would provide inference (the process of running trained AI models to generate responses) for open source AI models. Hosted on IBM Cloud, the cluster will use Nvidia's HGX B300 systems, which incorporate its latest Blackwell processors, alongside Nvidia Spectrum-X Ethernet networking.Nvidia says the infrastructure can deliver 30 times more AI factory output than previous generations.The initial U.S.-based deployment will include about 2,000 Nvidia Blackwell chips and is expected to become available in the first quarter of 2027.The deal comes amid growing attention around the capabilities and security risks of increasingly autonomous AI systems, following a spate of cybersecurity incidents involving models from Anthropic, OpenAI and Meta.Related:New Premium Tier for ChatGPT BusinessInterest in open models, which are accessible to the public for modifications and often cheaper than closed-source alternatives, has risen in response."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," Vipul Ved Prakash, CEO of Together AI, said in a statement. "This cluster…[is] a big step in our push to make open source AI the obvious choice for enterprises."The deal is also the latest in a series of collaborations between IBM and Nvidia, which are working to expand AI infrastructure and software for enterprise customers.In March, the partners entered into an expanded collaboration to “help enterprises operationalize AI at scale,” spanning GPU-accelerated data analytics, unstructured data processing, regulated AI infrastructure and cloud computing and consulting.About the AuthorContributing WriterScarlett Evans is a freelance writer with a focus on emerging technologies and the minerals industry. Previously, she served as assistant editor at IoT World Today, where she specialized in robotics and smart city technologies. Scarlett also has a background in the mining and resources sector, with experience at Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022 before transitioning to freelance work.