IBM Targets AI Inference Costs and VM Modernization With New Red Hat Cloud Services

IBM Targets AI Inference Costs and VM Modernization With New Red Hat Cloud Services

By Suparna Chawla Bhasin
Publication Date: 2026-05-20 14:33:00

IBM has announced two new managed services on IBM Cloud: Red Hat AI Inference on IBM Cloud and Red Hat OpenShift Virtualization Service on IBM Cloud. The services are focused at enterprises that want to move AI into real production and rethink how they manage virtual machines across hybrid cloud environments.

IBM Targets Production AI Workloads

Red Hat AI Inference on IBM Cloud is designed to help organizations run real-time AI inference without managing the underlying GPUs, infrastructure, or platform operations themselves. The service uses Red Hat AI’s inference engine and IBM Cloud infrastructure to support production AI workloads, including applications and agents that need consistent performance. IBM said the service includes governance controls, audit logging, privacy controls, IBM Cloud IAM integration, and SLA-backed reliability.As AI usage moves across more teams and applications, inference can become difficult to track and manage. IBM says the service is designed to give…