Cisco Systems Inc. has announced plans to invest $1 billion in startups dedicated to developing “secure and reliable” artificial intelligence services, a move aimed at bolstering its presence in the rapidly expanding AI technology sector. The announcement was made on Tuesday at the Cisco Live conference held in Las Vegas.
The company has already allocated approximately $200 million of this investment, targeting companies such as Mistral AI, Scale AI Inc., and Cohere Inc. This initiative reflects the company’s broader strategy to tap into the surging interest in AI computing, similar to other established Silicon Valley firms. The company has integrated AI into several of its existing products, including its well-known Webex conferencing service, and has partnered with Nvidia Corp. to develop products utilizing Nvidia’s chips.
Mark Patterson, Cisco’s Chief Strategy Officer, emphasized that beyond financial investments, The company intends to form partnerships with these AI startups. This collaboration could involve incorporating their technology into Cisco’s product portfolio and aiding in the distribution of these services to corporate and government clients. “AI is reshaping every industry across the globe at an unprecedented pace,” Patterson stated in an interview, highlighting the transformative impact of AI across various sectors. He added that some of Cisco’s investments would be complemented by partnership agreements.
Patterson noted that Cisco has completed seven AI-related acquisitions and made 11 investments to date
The company’s commitment to AI extends beyond external investments. The San Jose, California-based company is also investing heavily in internal AI research projects. Patterson noted that Cisco has completed seven AI-related acquisitions and made 11 investments to date.
Among the startups the company is investing in, Mistral AI is a French company founded by former employees of Meta Platforms Inc. and Google DeepMind, focusing on the development of AI models. Scale AI, based in San Francisco, specializes in preparing data for training AI software. Cohere, headquartered in Toronto, offers AI software capable of understanding and generating natural-sounding text responses.
