Cisco Reveal Scale of AI Ambitions with CoreWeave Investment
Cisco is making plays to secure its seat on the AI ship with reports of a significant investment in CoreWeave in a deal that values the startup at US$23bn.
Such timing of this investment is particularly noteworthy, as CoreWeave is said to be considering an initial public offering (IPO) as early as next year.
The US-based cloud-computing provider specialising in AI has reports claiming it has allowed existing shareholders to tender US$400m to US$500m of their holdings.
An AI strategic partnership
Cisco's interest in CoreWeave is not surprising; the latter's is pushing for adoption of NVIDIA's graphics chips for data centres, and has allocated substantial investment in its AI infrastructure alongside a potential IPO make it an attractive offering for companies like Cisco.
Such capabilities could see it running sophisticated AI applications, something that aligns perfectly with Cisco's growing focus on AI-augmented technologies.
While Cisco is primarily known as an IT networking giant, the company has been on a relentless mission to integrate AI into its offerings.
This focus has been particularly evident in the realm of AI-augmented cybersecurity, where Cisco has made significant strides.
In August, Cisco announced plans for workforce reductions that could affect thousands, marking the second round of layoffs this year, to refocus on high-growth areas such as cybersecurity and AI.
Equally, the company announced a new US$1bn fund dedicated to AI startups. This initiative aims to nurture the AI ecosystem and promote the development of reliable and secure AI technologies.
As part of this AI fund, Cisco has already made strategic investments in several AI-focused companies, including Mistral AI, Cohere, and Scale AI.
Cisco's commitment to AI is further exemplified by its recent product announcements. The company has introduced the Cisco AI Assistant for Security, a significant step in making AI pervasive in its Security Cloud.
This with its Security Cloud Control, described as "AI Native", automates security responses across hybrid cloud environments without the need for human intervention.
The company has also integrated AI into its ThousandEyes network performance and intelligence platform, allowing customers to get a unified view of telemetry across all their cloud environments, and introduced AI-powered features in its firewall management systems.
The CoreWeave advantage
CoreWeave's expertise in AI-focused cloud computing is expected to complement Cisco's existing AI capabilities significantly.
As CoreWeave continues to expand its data centres, this partnership could potentially accelerate Cisco's ability to offer enhanced AI-related computing services to its customers.
The synergy between Cisco's networking expertise and CoreWeave's AI-focused cloud infrastructure could lead to more robust, scalable, and efficient AI solutions.
As the AI landscape continues to evolve rapidly, Cisco's investment in CoreWeave demonstrates its commitment to staying at the forefront of this technological revolution. With this strategic move, Cisco is not just adapting to the AI era—it's actively shaping it.
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