IBM Lands $240 Million AI Deal with Together AI to Scale Inference
Key takeaways
- IBM's $240 million deal with Together AI is a strategic move to scale its AI capabilities and drive growth, with potential benefits for the company's stock price and overall performance.
- IBM's stock price has gained 2.27% on Tuesday
- IBM's EPS estimate has increased to $2.89, up from $2.65
- IBM's revenue estimate has increased to $16.85 billion, up from $16.33 billion
What happened
IBM signed a $240 million multi-year agreement with Together AI to expand its AI capabilities, with plans to deploy a large cluster of NVIDIA HGX B300 systems on IBM Cloud by the first quarter of 2027.
Why it matters
The deal is significant for IBM as it aims to scale its inference capabilities, and the partnership with Together AI could lead to new revenue streams and growth opportunities.
Short-term and longer-term
Short-term. IBM's stock price has gained 2.27% on Tuesday, but the company's overall performance is still lagging behind the broader market.
Longer-term. The agreement with Together AI is a significant step for IBM in its AI strategy, and the company's plans to deploy a large cluster of NVIDIA HGX B300 systems on IBM Cloud by the first quarter of 2027 will be closely…