International Business Machines Corp. (NYSE:IBM) and Groq have announced a partnership to speed up enterprise use of agentic artificial intelligence.
The deal integrates IBM’s watsonx Orchestrate with Groq’s high-performance inference platform, GroqCloud, to deliver faster, more cost-efficient AI capabilities across regulated and commercial industries.
As part of the collaboration, IBM and Groq will combine Groq’s Language Processing Unit (LPU) architecture with watsonx Orchestrate, while enhancing Red Hat’s open-source vLLM technology to support IBM Granite models.
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The integration aims to provide clients with scalable infrastructure for deploying AI agents in real-world applications.
Many companies struggle to transition from AI pilot projects to production due to cost and latency issues. GroqCloud, powered by its custom LPU, delivers more than five times faster inference than traditional GPU systems, maintaining low latency even as workloads scale globally.
The system supports complex workflows in fields such as healthcare, where IBM’s AI agents can process large volumes of data and provide accurate, real-time responses.
IBM clients are also using the Groq-powered system in human resources, retail, and financial services to automate processes and improve productivity. By combining Groq’s inference performance with IBM’s orchestration tools, the companies aim to make AI deployment faster and more reliable for enterprise customers.
“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, IBM’s Senior Vice President of Software and Chief Commercial Officer.
The announcement follows IBM’s move to roll out three new AI agents on Oracle’s platform, reflecting its broader push to enhance automation and interoperability across ecosystems. Access to GroqCloud through watsonx Orchestrate is available immediately, supporting secure and compliant AI deployment for global enterprises.
Price Action: IBM shares were trading higher by 0.86% to $283.70 premarket at last check Monday.
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