IBM Lands $240M Together AI Deal To Build Nvidia-Powered Neocloud Cluster

IBM Lands 0M Together AI Deal To Build Nvidia-Powered Neocloud Cluster

By Prabhjote Gill
Publication Date: 2026-08-11 13:04:00

The cluster will use Nvidia HGX B300 systems and Spectrum-X Ethernet networking and is expected to come online in Q1 2027.

  • 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…