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IBM Enters Neocloud Market with $240M Deal to Support Nvidia-Powered AI Infrastructure
IBM has made a significant move into the growing neocloud market by partnering with Together AI on a $240 million deal. The agreement will provide Together AI with dedicated AI computing capacity on IBM Cloud, using Nvidia systems.
The cluster will utilize Nvidia HGX B300 systems and Spectrum-X Ethernet networking, and is expected to come online in Q1 2027. This infrastructure will support Together AI's open-source model inference business for enterprise customers.
Together AI recently raised $800 million at an $8.3 billion valuation and claims its platform processes 400 trillion tokens each month. The company falls under the category of neoclouds, which include publicly traded companies such as CoreWeave and Nebius.