Teradata launched Teradata AI Factory, which aims to target integrated AI systems for regulated industries.
According to Teradata, its AI factory will include its AI and machine learning tools as well as analytics.
The offering is another indicator that enterprise system providers are looking to court companies looking toward on-premises AI workloads. Teradata AI Factory includes pre-packaged Teradata and various tools for compliance. The system also includes Teradata AI Microservices that can run on Nvidia GPUs and Teradata's Enterprise Vector Store.
For Teradata, the move targeting regulated industries such as healthcare, finance and government is about carving out a niche for AI workloads. Dell, CIsco, HPE and SuperMicro are just a few of the companies looking to scale enterprise AI factories mostly powered by Nvidia, but also AMD.
On-premises AI systems are seen as a way to control infrastructure, secure first party data and manage costs. Teradata AI Factory keeps data on an enterprise's infrastructure. Teradata is looking to return to revenue growth. In the first quarter, Teradata reported net income of $44 million, or 45 cents a share, on revenue of $418 million, down 10% from a year ago.
Key components for Teradata AI Factory, which is available now, include:
- Teradata's IntelliFlex platform along with Enterprise Vector Store is designed for integration of structured and unstructured data.
- AI Workbench, a self-service tool with access to analytics libraries and function, model lifecycle management and LLM deployment options.
- Analytics that connect to customer GPUs via Teradata AI Microservices with Nvidia.
- Native RAG processing in Teradata's ecosystem.
- Data pipeline support for Open Table Formats as well as internal tools such as Teradata's QueryGrid.
Constellation Research's take
Constellation Research analyst Michael Ni said:
"Teradata’s historic strength has been as the platform of choice for regulated, high-performance analytics behind the firewall. AI Factory doesn’t invent a new advantage—it reactivates one, just as the market is circling back to demand sovereign, secure, high-performance AI on-prem.
This all comes at a time when cloud cost volatility and regulatory scrutiny are rising, prompting enterprises to rethink where their most sensitive and strategic AI workloads run.
AI Factory lets Teradata solidify its existing base in regulated industries while positioning to win new customers who assumed on-prem AI meant stitching open-source tools together, or may not have considered Teradata in the past.
With AI Factory, Teradata brings together high-performance analytics, vector stores, and GPU acceleration—all integrated into an on-prem system that removes the complexity many CIOs associate with custom AI deployments.
Teradata isn’t playing catch-up—they’re positioning themselves for a leader for regulated AI. While Snowflake and Databricks started as cloud native and chased cloud market share, Teradata was born on-prem and built the AI command center enterprises need for a unified hybrid experience across platforms, with GPUs, governance, and guardrails included.
Cloud-native rivals aren’t on-prem ready: Snowflake and Databricks have limited to no on-prem AI deployment capabilities today. Their architectures were designed for hyperscaler elasticity, not sovereign infrastructure.
Teradata never left on-prem: It remained the data platform of record for regulated industries like healthcare, financial services, and telco—where cloud migrations remain slow or selective.
AI Factory is turnkey, not toolkit: While competitors may support hybrid integrations, Teradata is offering an integrated hardware-software bundle tailored for private AI—a step ahead in execution for this use case. Teradata is ahead of other on-premise vendors like IBM or HPE or even Intersystems or Vast.
AI Factory gives enterprises a way to scale AI with an out-of-the-box packaged solution—with governance, performance, and control baked in. What stands out is how Teradata integrated model ops, vector search, and LLM pipelines into a turnkey platform providing traceability and compliance from experimentation to production."
