IBM and Nvidia (NVDA) Build a New AI System to Organize and Use Data More Effectively

Tech giant IBM (IBM) has teamed up with chipmaker Nvidia (NVDA) to build a new type of AI system. In fact, IBM’s platform, called Fusion, is one of the first to use Nvidia’s new “AI Data Platform” setup, which combines high-performance GPUs (specifically, the RTX PRO 6000 Blackwell Server Edition) with networking and AI tools. The University of Texas Southwestern Medical Center is the first to use this system. Interestingly, the system is designed to prepare and organize different kinds of data so that AI can use them effectively.

IBM Fusion does this by constantly processing and sorting data, which helps AI understand and respond better. It also works with Nvidia’s NeMo tools, which allow the AI to retrieve relevant information quickly. In addition, the system runs on IBM’s own secure servers, which means that user data doesn’t touch Google (GOOGL) or outside infrastructure. At UT Southwestern, this setup is being used to boost research and support AI tools for things like drug discovery and training future doctors.

For example, researchers can use IBM Fusion and Nvidia’s BioNeMo tools to develop new medicines faster. Medical students can also train with AI-created “patient avatars” that simulate real-life health cases, thereby helping them learn diagnoses in a more interactive way. Another tool, called Helixa AI, helps researchers work more efficiently by offering smart suggestions based on their data. IBM says that the system makes it easier for researchers to access and use their data without dealing with technical obstacles.

Is IBM a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven 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 $295.18 per share implies 4.8% downside risk.

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