NEW YORK - Kyndryl (NYSE: KD), known as the largest global provider of technology infrastructure services, announced today a collaboration with NVIDIA (NASDAQ:NVDA) to enhance artificial intelligence (AI) applications for businesses. The partnership aims to expedite the development and implementation of AI-powered solutions across various industries.
Kyndryl will integrate NVIDIA's AI software into its Kyndryl Bridge digital business platform, which supports the full lifecycle of AI development from inception to deployment in real-world business scenarios.
The collaboration seeks to leverage Kyndryl's industry expertise and NVIDIA's accelerated computing technologies to provide customers with the necessary tools to scale generative AI solutions effectively.
To boost the adoption of generative AI in mission-critical IT operations, Kyndryl will utilize NVIDIA NeMo and NVIDIA NIM inference microservices. These services will address common and specific industry use cases, including customer support, IT operations automation, fraud prevention, and real-time analytics.
The integration of NVIDIA's technologies with Kyndryl Bridge is expected to optimize AIOps on NVIDIA Tensor Core GPUs. This will allow for rapid processing of failure predictions and analysis, aiming to reduce network and IT infrastructure failures.
The addition of retrieval-augmented generation (RAG) with NVIDIA NeMo Retriever microservices is designed to tailor solutions to enterprise environments, offering a comprehensive approach to managed IT services.
Kyndryl's vice president of Software Engineering, Hidayatullah Shaikh, expressed enthusiasm about the partnership's potential to resolve key challenges for businesses integrating AI across their operations. NVIDIA's vice president of enterprise software, John Fanelli, highlighted the demand for expert guidance in integrating AI applications into business operations.
The collaboration will also offer services through the Kyndryl Bridge catalog, delivering the NVIDIA AI platform to industries such as financial services, retail, telecom, and healthcare. Kyndryl Consult will assist customer implementations on NVIDIA's accelerated computing infrastructure, whether on-premises or in cloud environments.
New benefits for customers include accelerated AI performance, value-driven Consult & Managed Services, GPU-aware workload placement for energy efficiency, and enhanced performance of AI applications like chatbots and virtual avatars on NVIDIA-powered systems.
This partnership is based on a press release statement and aims to provide businesses with the capabilities to scale their AI strategies rapidly.
InvestingPro Insights
Kyndryl's recent announcement of its partnership with NVIDIA to bolster AI applications for businesses comes at a time when the company's financial metrics reflect both challenges and opportunities. According to InvestingPro data, Kyndryl has a market capitalization of $6.39 billion, signaling a significant presence in the technology infrastructure services sector. Despite a challenging revenue trajectory with a -5.72% growth over the last twelve months as of Q4 2024, the company has shown a strong return on its stock price, with a one-year price total return of 138.16%.
InvestingPro Tips suggest that Kyndryl is a prominent player in the IT Services industry, which aligns with the company's strategic move to partner with NVIDIA. However, the company has been navigating through weak gross profit margins, which stood at 17.84% for the same period. Investors and analysts will be watching closely to see if this collaboration can help improve profitability, as the company is not currently profitable over the last twelve months.
The stock has had a high return over the last year and is trading near its 52-week high, at 97.71% of the peak price. These metrics may indicate investor optimism about Kyndryl's future, especially as the company is expected to grow its net income this year. With the company's strong return over the last month at 41.25%, this partnership could potentially maintain or even accelerate the positive momentum.
For readers interested in further analysis and additional InvestingPro Tips, such as the company's volatility and RSI indications, visit the Kyndryl page on InvestingPro: https://www.investing.com/pro/KD. There are currently 13 additional tips available, providing deeper insights into Kyndryl's performance and prospects. Moreover, users can apply the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable tips for informed investment decisions.
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