IBM and Together AI expanded their cloud partnership for AI capacity deployment.

IBM has entered into a multi-year agreement valued at $240 million with Together AI to support enterprise artificial intelligence inference. The partnership will enable IBM to expand its cloud infrastructure offerings for open-source AI workloads and strengthen its position in the rapidly growing AI infrastructure market.

Under the agreement, IBM plans to deploy a large cluster of NVIDIA HGX B300 systems on IBM Cloud and provide Together AI with enterprise-grade cloud infrastructure powered by NVIDIA's advanced computing and Spectrum-X Ethernet networking technologies. The deployment is designed to support high-performance AI inference and make large-scale workloads more cost-effective.

The collaboration expands IBM's broader relationship with NVIDIA across AI infrastructure and software. The companies are advancing solutions in GPU-accelerated data analytics, unstructured data processing, hybrid cloud infrastructure and consulting services. These capabilities are expected to help enterprises deploy AI workloads across cloud and on-premises environments with greater performance, flexibility and scalability.

The deal reflects IBM's effort to capture opportunities created by enterprises' expanding AI spending. The partnership could help IBM expand its customer base and generate long-term revenues while competing with Microsoft and Amazon, both of which are rapidly investing in AI infrastructure and services.