Tech titans IBM (IBM) and AMD (AMD) have formed a new partnership in order to support Zyphra, which is an AI startup focused on open-source development. Under the multi-year deal, IBM will host a large cluster of AMD’s powerful Instinct MI300X GPUs on IBM Cloud. This setup will help Zyphra train large and complex AI models that combine text, visuals, and audio. Interestingly, it is also one of the largest AI training projects to date using AMD’s full technology stack.
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Zyphra, which was recently valued at $1 billion after its Series A funding round, is building an open-source/open-science superintelligence lab. The lab’s research will focus on advanced neural networks, long-term memory, and continuous learning that are essential for creating more adaptable and intelligent AI. Zyphra’s main goal is to develop Maia, a general-purpose “superagent” that can understand and work with language, images, and sound in order to help enterprise workers become more productive.
Unsurprisingly, CEO Krithik Puthalath said that Zyphra is proud to be the first to use AMD’s full-stack AI training platform on IBM Cloud. Meanwhile, IBM and AMD were excited about the partnership’s role in turning advanced AI research into real-world tools. It is also worth noting that the first phase of the project launched in September, with the next phases planned for 2026.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on six Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $293.58 per share implies 3.7% upside potential.
