IBM has announced it will be making Intel’s Gaudi 3 AI processors available on its IBM Cloud platform.

Due to be available from early 2025, IBM Cloud is the first cloud service provider to adopt and offer Gaudi 3.

Intel Gaudi 3
Intel Gaudi 3 – Intel

IBM said the offering will be available for both hybrid and on-premise environments, with Gaudi 3 set to be integrated with 5th Gen Xeon to support enterprise AI workloads in the cloud and in data centers. According to the two companies, the collaboration aims to lower the cost of AI deployments whilst boosting performance.

The company added that the offering will also support Gaudi 3 within IBM's watsonx AI and data platform – a product suite allowing users to build, train, and deploy generative AI and foundation models.

“Leveraging Intel's Gaudi 3 accelerators on IBM Cloud will provide our clients access to a flexible enterprise AI solution that aims to optimize cost performance,” said Alan Peacock, GM of IBM Cloud. “We are unlocking potential new AI business opportunities, designed for clients to more cost-effectively test, innovate, and deploy AI inferencing solutions.”

First unveiled earlier this year at Intel’s Vision 2024 conference, the company has marketed the Gaudi 3 accelerator as a more affordable alternative to Nvidia’s H100 GPU.

Speaking in February 2024, Intel CEO Pat Gelsinger said the company expected to see more than “$500 million in [AI accelerator Gaudi 3] revenue in the second half of 2024 with increasing momentum into 2025.”

In July, Intel announced it would be cutting more than 15,000 jobs as part of a $10bn cost-saving plan after the company reported a net loss of $1.6 billion for Q2 2024.