Teradata has launched Teradata AI Factory, an on-premises AI solution designed to deliver secure, scalable, and cost-effective AI capabilities. Announced on June 24, 2025, this platform integrates NVIDIA technology to support predictive, generative, and agentic AI, addressing the needs of regulated industries and enterprises seeking greater data autonomy.
Teradata AI Factory, built on the IntelliFlex platform, brings cloud-based AI/ML capabilities to secure on-premises environments. Designed for industries like healthcare, finance, and government, it aligns with stringent regulations such as GDPR and HIPAA, keeping sensitive data within organizational boundaries to mitigate risks like data exposure and intellectual property loss. “Market dynamics are increasing buyer interest in on-premises solutions,” said Teradata’s Chief Product Officer, Sumeet Arora. “Teradata remains the clear leader in this environment, with proven foundations in what makes AI meaningful and trustworthy: Top-notch speed (performance), predictable cost (resource efficiency), and integration with the golden data record (which may already live on Teradata).”
The platform optimizes resource management by minimizing data movement and latency, ensuring cost predictability. It leverages customer-provided NVIDIA GPUs and Teradata AI Microservices with NVIDIA NeMo for high-performance tasks, including native Retrieval-Augmented Generation (RAG) pipelines. This enables natural language querying across structured and unstructured data, delivering faster insights while avoiding unpredictable cloud costs. A Gartner report projects that by 2028, over 20% of enterprises will run AI workloads locally, up from 2% in early 2025, highlighting the growing demand for solutions like AI Factory
Teradata AI Factory unifies data pipelines, algorithm execution, and software infrastructure into a scalable system. The AI Workbench offers a self-service workspace with tools like JupyterHub, ModelOps, and ClearScape Analytics, supporting model lifecycle management and one-click LLM deployment. Data ingestion tools, including QueryGrid and Open Table Format (OTF) compatibility, streamline integration of complex data formats like PDFs, enhancing operational efficiency.
Global instability and stricter data sovereignty regulations are driving enterprises toward on-premises AI solutions. Teradata AI Factory addresses these challenges by reducing compliance risks and simplifying AI ecosystem complexity. Its integration with NVIDIA’s Enterprise AI Factory validated design ensures rapid deployment and scalability, making it a turnkey solution for organizations seeking trusted AI outcomes with enhanced governance and control.
Teradata AI Factory redefines private AI innovation by combining security, performance, and cost efficiency. With NVIDIA integration and a focus on data sovereignty, it empowers enterprises to accelerate AI development while maintaining compliance and control, positioning Teradata as a leader in trusted AI solutions.
At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most.
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