Kyndryl Launches AI Private Cloud in Japan with Dell and NVIDIA Collaboration

Kyndryl Unveils AI Private Cloud in Japan

Kyndryl Holdings, Inc. (NYSE: KD), the world's largest IT infrastructure services provider, has launched a dedicated AI private cloud in Japan, marking a significant step in accelerating AI innovation and deployment for Japanese enterprises and academic institutions 1

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Collaborative Effort with Tech Giants

The initiative is supported by a collaboration with Dell Technologies (NYSE: DELL) and NVIDIA Corporation (NASDAQ: NVDA). The new cloud environment utilizes the Dell AI Factory with NVIDIA, creating a controlled, secure, and sovereign space for organizations to develop, test, and implement AI services 1

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Target Sectors and Objectives

Kyndryl's AI private cloud is designed to cater to a wide range of sectors, including:

• Financial institutions
• Insurance providers
• Manufacturers
• Retail companies
• Academic organizations

The primary goal is to enable these entities to confidently design and prepare to deploy innovative AI-powered solutions, enhancing their competitive edge and boosting business performance 2

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Key Features and Capabilities

1. Kyndryl Vital AI Lab: This new capability leverages Kyndryl Bridge, an AI-powered open integration digital business platform, to support end-to-end AI applications and solution development using the NVIDIA AI Enterprise software suite 2

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2. Kyndryl Consult: The company will apply its domain and industry expertise to help clients develop, validate, and scale AI solutions effectively 1

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3. Security and Sovereignty: The private cloud environment addresses critical concerns such as data security, sovereignty, and residency requirements 2

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4. Diverse Use Cases: The platform supports a wide range of AI and generative AI use cases, including retrieval-augmented generation (RAG), model training, and inferencing 1

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Technological Advancements

Kyndryl plans to optimize the environment for efficient workload orchestration and placement, exploring fractional GPU capabilities for more granular control over computing resources. The company also intends to leverage NVIDIA NeMo, NVIDIA NeMo Retriever, and NVIDIA NIM microservices to accelerate the adoption and implementation of generative AI solutions 3

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Industry Perspectives

Jonathan Ingram, President of Kyndryl Japan, emphasized the need for a reliable and scalable environment with advanced security capabilities for AI development and testing. Kyle Dufresne, SVP of AI solutions sales at Dell Technologies, highlighted the end-to-end, pre-validated, full-stack infrastructure provided by the Dell AI Factory with NVIDIA 2

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Bob Pette, Vice President of Enterprise Platforms at NVIDIA, stressed the importance of next-gen expertise and skills in driving innovation and tackling AI challenges in businesses 3

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Market Impact

The announcement has had a positive impact on Kyndryl's stock, with shares trading higher in premarket activity. Investors can gain exposure to Kyndryl through ETFs such as the Invesco S&P Spin-Off ETF (CSD) and the Hilton Small-MidCap Opportunity ETF (SMCO) 1

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As organizations worldwide seek to harness the power of AI, Kyndryl's new private AI cloud service in Japan represents a significant step towards providing the necessary infrastructure and expertise for AI adoption at scale.