IBM Invests in AI Cloud Capabilities with $240 Million Deal

IBM has signed a $240 million multi-year agreement with startup Together AI to build a large-scale artificial intelligence cluster on IBM Cloud using Nvidia systems.

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.

IBM and Together AI announced the deal on Tuesday. The agreement is a significant investment by IBM in its cloud capabilities, with a focus on artificial intelligence.