IBM Corp. and artificial intelligence (AI) chip startup Groq announced a partnership Wednesday aimed at helping businesses rapidly deploy AI agents through enhanced speed and efficiency.

The collaboration will integrate Groq’s inference technology, GroqCloud, into IBM’s watsonx Orchestrate platform, giving enterprise clients access to AI processing capabilities that the companies claim are significantly faster and more cost-effective than traditional GPU-based systems.

A cornerstone of the partnership is Groq’s custom Language Processing Unit (LPU) architecture, which the company says delivers inference speeds more than five times faster than conventional GPU systems while reducing costs. This performance advantage becomes particularly critical as companies attempt to scale AI agents from experimental pilots to full production deployment.

“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,” Rob Thomas, IBM’s senior vice president of software and chief commercial officer, said in a statement.

The partnership targets healthcare, finance, government, retail, and manufacturing. In healthcare applications, IBM clients processing thousands of simultaneous patient inquiries can leverage the technology to analyze information and deliver accurate responses in real-time.

Beyond regulated industries, the technology is already being applied to human resources automation in retail and consumer packaged goods sectors, where companies are deploying AI agents to streamline HR processes and boost employee productivity.

Analysts said the partnership reflects growing pressure on enterprises to overcome persistent challenges in AI deployment, particularly around speed, cost, and reliability. By combining Groq’s inference technology with IBM’s orchestration capabilities and enterprise experience, the companies aim to provide the infrastructure necessary for businesses to scale AI agents effectively across their operations.

Access to GroqCloud’s capabilities through IBM will be available immediately, the companies announced.

“With Groq’s speed and IBM’s enterprise expertise, we’re making agentic AI real for business,” Groq CEO Jonathan Ross said in a statement. “This partnership is about transforming how enterprises work with AI, moving from experimentation to enterprise-wide adoption with confidence.”

The partnership will deliver several key capabilities to IBM clients, including high-performance inference designed to power customer care and employee support applications, security-focused AI deployment meeting stringent regulatory requirements, and seamless integration with IBM’s watsonx Orchestrate platform.

Additionally, the companies plan to integrate and enhance Red Hat’s open-source vLLM technology with Groq’s LPU architecture, addressing critical developer needs such as inference orchestration, load balancing, and hardware acceleration. IBM’s Granite AI models will also be supported on GroqCloud for IBM customers.