Kyndryl expands alliance with HPE to boost AI private cloud adoption

NEW YORK - Kyndryl (NYSE:KD), a prominent player in IT Services with annual revenue of $15.06 billion, announced Wednesday an expansion of its strategic alliance with HPE to deliver services supporting customer adoption of HPE Private Cloud AI, a turnkey enterprise AI solution co-developed with NVIDIA. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value calculations.

Under the expanded partnership, Kyndryl Consult will provide AI private cloud services and accelerators to help customers develop, implement and scale AI solutions leveraging HPE Private Cloud AI, which is part of the NVIDIA AI Computing by HPE solutions portfolio. The company’s strong financial health score of GOOD from InvestingPro suggests it’s well-positioned to execute on this strategic initiative.

"Our expanded alliance with HPE illustrates our shared commitment to driving innovation and accelerating customer implementation of private AI solutions," said Nicolas Sekkaki, Global Cloud Practice Leader at Kyndryl.

Gilles Thiebaut, Senior Vice President for Global Hybrid Cloud Sales at HPE, noted that the collaboration "represents a pivotal step in enterprises adopting and developing AI solutions that can improve productivity and generate fast and sustainable ROI."

The companies will support various industry-specific AI private cloud use cases. In healthcare, their solutions will enable secure handling of patient data and improved diagnostics. For financial services, the partnership will help deploy AI workloads that meet data security requirements while supporting risk management.

This collaboration builds on Kyndryl’s existing AI private cloud initiatives, including an AI private cloud established for customers in France to accelerate enterprise AI solution deployment within a secure environment.

Kyndryl will utilize HPE’s observability, automation and unified control plane solutions to accelerate the deployment and management of customer AI workloads, according to the press release statement.

In other recent news, Kyndryl Holdings reported its first-quarter earnings for fiscal year 2026. The company’s earnings per share (EPS) aligned with analysts’ expectations at $0.37. However, Kyndryl’s revenue fell short of forecasts, coming in at $3.74 billion compared to the anticipated $3.83 billion, marking a revenue surprise of -2.35%. In another development, Kyndryl announced a strategic collaboration with Nova Intelligence to enhance SAP digital transformation projects for enterprise customers. This partnership aims to integrate Kyndryl’s SAP modernization services with Nova Intelligence’s AI solutions to facilitate a more efficient and cost-effective migration to SAP Cloud ERP. These recent developments highlight Kyndryl’s efforts to innovate and adapt in a competitive market.

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