Teradata has unveiled Teradata AI Factory, an advanced, on-premises solution designed to deliver the full spectrum of AI/ML capabilities including predictive, generative, and agentic AI within a secure and scalable enterprise environment.
Engineered for industries demanding stringent data privacy and governance, AI Factory combines essential AI components data pipelines, algorithm execution, and software infrastructure into a unified platform. This turnkey offering is tailored for enterprises looking to accelerate innovation while retaining full control over their data and infrastructure. By leveraging Teradata AI Microservices with NVIDIA and customer-supplied NVIDIA GPUs, businesses can fast-track AI development, including native Retrieval-Augmented Generation (RAG) pipelines. Built on the NVIDIA Enterprise AI Factory validated design, AI Factory is ideal for sectors like healthcare, finance, government, and any organization prioritizing AI sovereignty and agility.
As global uncertainty and evolving data residency laws reshape AI deployment strategies, organizations are shifting away from unpredictable cloud costs and underutilized GPU investments. This movement is fueling demand for robust, private AI environments that offer tighter governance, reduced risk, and more efficient resource management all while supporting enterprise-scale operations with budget predictability.
“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). Teradata AI Factory builds on these strengths in a single solution for organizations using on-prem infrastructure to gain control, meet sovereignty needs, and accelerate AI ROI.”
According to a recent Gartner® report, “By 2028, more than 20% of enterprises will run AI workloads (training or inference) locally in their data centers, an increase from approximately 2% as of early 2025.” (“How to Determine Infrastructure Requirements for On-Premises Generation AI” by Chandra Mukhyala, Jonathan Forest, Tony Harvey, March 5, 2025)
Also Read: ManageEngine Unveils MSP Central for Modern MSP Infrastructure
Key Benefits of Teradata AI Factory:
-
Enterprise-Grade Privacy & Compliance: Designed to keep sensitive data in-house, AI Factory reduces exposure to regulatory risks. It aligns with global compliance standards such as GDPR and HIPAA, making it a trusted option for data-sensitive industries.
-
Cost Control & Performance Efficiency: Its localized architecture ensures lower data movement, latency, and operating costs while allowing scalable AI workloads to run on existing CPU or GPU infrastructure, delivering industry-leading price-performance.
-
Seamless Deployment & AI Acceleration: AI Factory’s ready-to-deploy stack includes Teradata Enterprise Vector Store and AI Microservices with NVIDIA NeMo, enabling organizations to rapidly implement natural language-based data interaction and intelligence at scale.
What’s Inside the AI Factory:
-
AI Platform for Rapid Innovation: Built on IntelliFlex, the AI Factory platform includes the Teradata Enterprise Vector Store, enabling seamless integration of structured and unstructured data for generative AI use cases.
-
Comprehensive Software Stack: The new AI Workbench offers a developer-friendly, self-service environment with tools like ClearScape Analytics, JupyterHub, ModelOps, Airflow, Gitea, and Devpi, supporting full model lifecycle management and frictionless LLM deployment.
-
Scalable Algorithm Execution: AI Factory delivers high-performance algorithm execution for predictive and generative models, natively integrating with customer-provided GPUs via Teradata AI Microservices and NVIDIA technologies.
-
Robust Data Pipelines: Modern ingestion and integration tools, including QueryGrid and support for Open Table Formats, object stores, and NVIDIA solutions, allow AI Factory to build efficient and resilient data pipelines even for complex formats like PDFs.