Cisco (NASDAQ:CSCO) has unveiled a $1 billion fund dedicated to investing in artificial intelligence startups, joining the ranks of major technology firms seeking to bolster their positions in the rapidly growing AI sector.
The company, through its investment arm, has already allocated nearly $200 million from the fund to support emerging AI ventures, including Cohere, Mistral AI, and Scale AI, among others.
Scale AI, an AI data startup, has garnered a valuation close to $14 billion, while Cohere and Mistral, developers of foundation AI models, are reportedly in discussions with investors to raise funds at valuations of $5 billion each. Foundation AI models, characterized by their extensive data utilization, offer versatile applications across various industries.
The surge in AI investment follows the momentum initiated by Microsoft-backed OpenAI’s ChatGPT launch in 2022, sparking increased interest from tech giants like Meta and Amazon, who have also made significant investments in AI startups.
Cisco’s move aligns with its strategic focus on AI, evidenced by its extensive track record of over 20 AI-related acquisitions and investments in recent years. The company aims to advance generative AI and machine learning capabilities while integrating AI across its product portfolio.
The establishment of the $1 billion fund underscores Cisco’s commitment to leveraging AI innovation to drive future growth and maintain its competitive edge in the evolving technology landscape.
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