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SAN FRANCISCO - IBM (NYSE:IBM) and AMD (NASDAQ:AMD), a prominent player in the semiconductor industry with a market capitalization of $262.56 billion, have entered into a multi-year agreement to provide AI infrastructure to Zyphra, a San Francisco-based open-source AI research company. According to InvestingPro data, AMD maintains strong financial health with robust liquidity metrics, positioning it well for major partnerships like this one.
The collaboration will deliver a large cluster of AMD Instinct MI300X GPUs on IBM Cloud for Zyphra to train multimodal foundation models. The initial deployment was made available to Zyphra in early September, with planned expansion in 2026. AMD’s revenue has grown 27.17% over the last twelve months, reflecting strong market demand for its advanced computing solutions.
Zyphra, which recently closed a Series A financing round at a $1 billion valuation, will use the training cluster to develop multimodal foundation models across language, vision, and audio modalities for its Maia superagent, designed for enterprise knowledge workers.
This marks the first large-scale, dedicated training cluster on IBM Cloud using AMD Instinct MI300X GPUs, AMD Pensando Pollara 400 AI NICs, and AMD Pensando Ortano DPUs.
"This collaboration marks the first time AMD’s full-stack training platform has been successfully integrated and scaled on IBM Cloud," said Krithik Puthalath, CEO and Chairman of Zyphra, according to the company’s press release.
Last year, IBM and AMD announced plans to deploy AMD Instinct MI300X accelerators as a service on IBM Cloud, aiming to enhance performance for generative AI models and high-performance computing applications.
The companies also recently announced plans to develop quantum-centric supercomputing architectures, leveraging IBM’s quantum computing expertise and AMD’s high-performance computing capabilities.
The collaboration aims to provide scalable AI infrastructure that can meet increasing computational demands for AI model training. AMD’s stock, currently trading near its InvestingPro Fair Value, has shown significant volatility, typical for companies at the forefront of AI innovation. Discover 13 additional exclusive insights and comprehensive analysis available through InvestingPro’s detailed research reports.
In other recent news, AMD announced an expanded collaboration with Cohere, allowing Cohere customers to run AI models on AMD Instinct GPU-powered infrastructure. This partnership includes the integration of Cohere’s North platform into AMD’s internal enterprise AI portfolio. Meanwhile, Elon Musk’s artificial intelligence company, xAI, has secured $10 billion in new funding, raising its valuation to $200 billion. The company has not commented on this funding round.
Nvidia has been in the spotlight following its collaboration with Intel. William Blair reiterated its Outperform rating for Nvidia, highlighting the integration of Intel’s CPUs into Nvidia’s NVL72 racks using NVLink technology. DA Davidson also reiterated a Buy rating on Nvidia, noting the multi-generation partnership with Intel and Nvidia’s $5 billion investment in Intel common stock. Intel announced that Nvidia will take a 4.9% stake in the company, as part of a strategic partnership to develop custom x86 CPUs for Nvidia’s AI infrastructure. Nvidia will also integrate its NVLink technology into the CPU-GPU platform, enhancing the collaboration between the two tech giants.
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