Gen AI (artificial intelligence) offers incredible advantages for businesses. But even before anything can truly happen, there’s some heavy lifting that needs to be undertaken to unlock AI’s full potential. One especially hefty assignment is the collaboration among tech companies. This is perhaps the first step in delivering the required compute power. The good news is tech companies are coming together to deliver this in a timely fashion.
At the end of August, IBM and Intel announced a global collaboration to deploy Intel Guadi 3 AI accelerators as a service on IBM Cloud. IBM Cloud with Guadi 3 will be available in early 2025 and is offered for both hybrid and on-premises environments.
This isn’t IBM and Intel’s first dance. The two behemoths have a long partnership, working together on projects such as the development of the IBM PC to the creation of enterprise AI solutions with Guadi 3.
Here’s how this latest announcement will help businesses: By creating a more cost-effective scale, enterprises in many different vertical markets will be able to leverage AI and drive innovation with both security and resiliency. At the same time, we will see greater availability, performance, cost, energy efficiency, and more.
Some of the other advantages will be achieved. Intel and IBM say that through this partnership they aim to lower the total cost of ownership to leverage and scale AI, while enhancing performance.
Here’s how the two companies will do that through this collaboration: Gaudi 3 is integrated with 5th Gen Xeon and supports enterprise AI workloads in the cloud and in data centers. Ultimately, this will give customers visibility and control over their software stack, simplifying workload and application management.
For generative AI inferencing workloads, IBM plans to enable support for Gaudi 3 within IBM’s watsonx AI and data platform, providing watsonx clients with additional AI infrastructure resources for scaling their AI workloads across hybrid cloud environments, helping to optimize model inferencing price and performance.
Here’s what comes next: Gen AI is here for the masses. Today, gen AI is really good at collecting data that humans put into a system and spitting it back out. But we are now at the point where AI needs to get smarter. This is where the tech companies and machine learning come in. The tech companies are working behind the scenes to make the AI work smarter, so you don’t have to work harder.
Fortune Business Insights suggests the global generative AI market was valued at $67.18 billion in 2024 and will be worth $967.65 billion by 2032, which is a growth rate of 39.6%. But we will only reach the adoption and the value as the technology continues to advance.
If you want to learn more about my thoughts on AI, make sure to head over to my new Substack account. Gen AI is most certainly here, but we still have a long way to go before we realize its true potential in business.
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