IBM and Together AI Sign $240 Million Open-Source AI Inference Deal

IBM and Together AI have entered into a multi-year agreement valued at $240 million to construct a large-scale AI inference cluster on IBM Cloud, utilizing Nvidia hardware. The deal, announced on Tuesday, underscores the growing demand for open-source AI models and the infrastructure required to support them. Together AI, a startup specializing in open-source AI inference, will leverage IBM's cloud services to enhance its capabilities. This partnership highlights the increasing collaboration between tech giants and specialized AI firms, as well as the strategic importance of cloud-based AI infrastructure. The agreement is a significant milestone for both companies, positioning them to capitalize on the expanding AI market. Financial terms and specific timelines were not disclosed, but the deal is expected to bolster IBM's cloud business and Together AI's service offerings.