Cisco Investments, the networking giant’s venture capital arm, has announced a $1 billion fund to accelerate the development of secure and dependable artificial intelligence (AI) solutions.
The project represents the global networking company’s efforts to strengthen the global AI ecosystem and enable businesses to capitalise on AI’s benefits.
Cisco has already contributed roughly $200 million to the fund, with strategic investments in Cohere, Mistral AI, and Scale AI serving as early examples.
“AI is rapidly reshaping industries at an unprecedented pace,” stated Mark Patterson, Cisco’s chief strategy officer. “This investment aligns perfectly with our long-standing strategy of supporting innovation through partnerships and investments.”
Highlighting the AI market’s exponential expansion, the tech behemoth referenced IDC (2023) study, which predicts a doubling in size to over $500 billion within three years. This provides a tremendous potential for organizations such as Cisco to employ generative AI (GenAI) and improve their solutions, eventually benefiting customers and end users.
Cisco highlights their holistic approach to AI advancement
In addition to the investment fund, the company has completed over 20 AI-related acquisitions and investments during the last few years. This commitment includes collaboration with top AI platforms in software and infrastructure.
The networking business explains its position as a “agnostic provider and platform player” in AI. Beyond venture financial backing, the organization plans to work with portfolio companies on product development. This co-innovation model will eventually increase accessibility and options for Cisco’s global customer base.
Cohere, Mistral, and Scale AI
Cisco announced specific investments from the new fund, highlighting three major players: Cohere, based in Toronto and San Francisco, specializes in secure, enterprise-grade large language models (LLMs) and retrieval-augmented generation (RAG) capabilities; Mistral AI, headquartered in Paris and a global leader in generative AI, focuses on developing innovative business models while prioritizing scientific excellence and responsible technology. Scale AI, a US-based firm, provides a comprehensive platform for training and verifying AI applications.
The IT behemoth recently served as the primary strategic investor in Scale AI’s Series F fundraising round.
“This dedicated fund underscores our unwavering commitment to AI and the pioneering minds shaping the future of technology,” said Derek Idemoto, SVP, Corporate Development and Cisco Investments. “By fostering innovation through various channels, we are well-positioned to empower businesses globally with the power of trustworthy AI.”
In recent news, the tech titan completed its acquisition of software business Splunk in a deal worth around $28 billion.
Customers, partners, and developers stand to benefit greatly from the merger of two industry heavyweights.
