We'll introduce PowerAI and the S822LC for HPC. PowerAI is an optimized software stack for AI designed to take advantage of Power processor performance features, and in particular of the new NVLink interface between Power and the NVIDIA Tesla P100 GPU accelerator, first introduced with S822LC for HPC. We'll introduce performance enhancements of the PowerAI, including IBM Caffe with its performance optimization centered at enhance communications and other enhancements to frameworks, libraries, and the deep learning ecosystem for Power. With its high-performance NVLink connection, the new generation S822LC for HPC server is the first that offers a sweet spot of scalability, performance, and efficiency for deep learning applications. Together, these hardware and software enhancements enabled the first release of PowerAI to achieve best in industry training for Alexnet and VGGnet.