IBM stock rises after partnership with Groq to accelerate AI deployment

Investing.com -- IBM (NYSE:IBM) stock rose 0.6% after the company announced a strategic partnership with Groq aimed at accelerating enterprise AI deployment through faster agentic AI capabilities.

The collaboration will integrate Groq’s inference technology, GroqCloud, with IBM’s watsonx Orchestrate platform, providing clients with high-speed AI inference capabilities at a cost that helps accelerate AI deployment in production environments. According to the announcement, GroqCloud delivers over 5X faster and more cost-efficient inference than traditional GPU systems.

As part of the partnership, Groq and IBM plan to enhance RedHat open source vLLM technology with Groq’s LPU architecture. IBM will also make its Granite models available on GroqCloud for its clients.

The partnership addresses challenges enterprises face when moving AI from pilot to production, particularly in mission-critical sectors like healthcare, finance, government, retail, and manufacturing. IBM’s healthcare clients, who receive thousands of complex patient questions simultaneously, can now analyze information in real-time and deliver immediate answers using this technology.

"Many large enterprise organizations have a range of options with AI inferencing when they’re experimenting, but when they want to go into production, they must ensure complex workflows can be deployed successfully to ensure high-quality experiences," said Rob Thomas, SVP, Software and Chief Commercial Officer at IBM.

Jonathan Ross, CEO & Founder at Groq, added: "With Groq’s speed and IBM’s enterprise expertise, we’re making agentic AI real for business. Together, we’re enabling organizations to unlock the full potential of AI-driven responses with the performance needed to scale."

IBM will offer access to GroqCloud’s capabilities immediately, focusing on delivering high-speed inference, security-focused AI deployment, and seamless integration with IBM’s watsonx Orchestrate.

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