Technology
Equinix partners with Nvidia and Together AI to target AI inference workloads
The colocation provider announced a distributed inference initiative launching in early 2027 as market demand shifts from AI model training to real-time execution.
The short version
- Equinix announced a partnership with Nvidia and cloud platform Together AI to introduce the Equinix Inference Exchange.
- The service aims to allow enterprise customers to run open-source AI models across Equinix's distributed metropolitan data centers.
- Together AI will handle customer billing as the seller of record when the program rolls out in the first quarter of 2027.
- The initiative positions Equinix's legacy colocation infrastructure to capture growing AI inference demand despite skepticism from some investors regarding legacy data center capital returns.
Key facts
- Equinix partnered with Nvidia and Together AI to establish the Equinix Inference Exchange, scheduled to launch in the first quarter of 2027.[CNBC]
- Together AI will act as the seller of record and bill end customers under the new program.[CNBC]
- Financial terms and deal values for the partnership were not disclosed.[CNBC]
- Equinix reported quarterly revenue of $2.63 billion, up 16% year-over-year, alongside net income of $477 million.[CNBC]
- Equinix's market capitalization reached $100 billion following a 33% increase in its stock price over the year.[CNBC]
What remains uncertain
- The long-term commercial performance and adoption rate of the Equinix Inference Exchange remain untested ahead of its Q1 2027 rollout.[CNBC]
- Financial returns for colocation providers targeting AI remain disputed, with short sellers arguing legacy facilities face high capital intensity and lower profitability compared to dedicated AI infrastructure.[CNBC]