IBM’s $240M Together AI Deal For Nvidia Systems Puts It In The Neocloud Business

• Together AI is a neocloud that provides GPU infrastructure and AI services to developers and enterprises.

• The neocloud plans to use IBM’s Cloud capacity to support its open-source AI model inference business for enterprise customers.

• The company recently raised $800 million at an $8.3 billion valuation and says its platform processes 400 trillion tokens each month.

International Business Machines (IBM) is expanding its push into the fast-growing neocloud market with a $240 million deal to provide Together AI with dedicated AI computing capacity on IBM Cloud, using Nvidia (NVDA) systems.

Together AI is a neocloud, a category of GPU-focused infrastructure providers that includes publicly traded companies such as CoreWeave (CRWV) and Nebius (NBIS). Unlike traditional enterprise customers, these companies buy large amounts of computing capacity and resell access to AI developers and businesses through their own platforms.

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