The company announced Tuesday that it signed a multiyear agreement with AT&T enabling the carrier to host its business applications on the IBM Cloud.
An IBM spokesperson confirmed to CNBC that the multibillion-dollar deal will extend "over several years," but didn't specify the exact value of the agreement or the time frame.
The partnership marks IBM's first publicly announced deal since it closed its $34 billion acquisition of open-source software firm Red Hat last week. In October, IBM said it would acquire all shares of Red Hat for $190 each in cash, representing IBM's largest deal ever.
As part of the agreement announced Tuesday, AT&T will use Red Hat's open-source platform to manage workloads and applications and "better serve" enterprise customers. AT&T and IBM will also team up on developing "edge computing platforms" that harness 5G networks and internet-connected devices.