- Cohere, Mistral AI and Scale AI among the initial GenAI startups joining the Cisco Investments portfolio to help build a broader AI ecosystem.
- Cisco is positioning itself at the vanguard of technological innovation and paving the way for transformative advancements in AI-enabled solutions.
Cisco, a prominent player in the realm of technology and networking, made a significant move by announcing the initiation of a $1 billion fund directed towards investment in artificial intelligence (AI) startups.
This strategic maneuver places Cisco among a cohort of leading technology corporations that are eagerly seizing opportunities to acquire stakes in emergent AI enterprises.
“The establishment of our $1 billion AI investment fund is a testament to our commitment to the transformative power of artificial intelligence and it’s potential to redefine industries globally,” Derek Idemoto, SVP, Corporate Development and Cisco Investments, said.
Through its investment division, Cisco has decided to invest in several AI-focused startups, including Cohere, Mistral AI, and Scale AI, among others. Notably, the company has already allocated a substantial portion of the fund, amounting to nearly 200 million.
AI data startup Scale AI is valued at nearly $14 billion, while so-called foundation model developers Cohere and Mistral are both reportedly in talks with investors to raise funds at a valuation of $5 billion each.
Recent research from IDC indicates that the global AI market is expected to double in size to over $500 billion in the next three years.
Driving innovation
“For more than 30 years, Cisco Investments has invested and partnered with hundreds of companies to drive innovation both within Cisco’s core markets and in new strategic areas. Our recent investments in generative AI companies align perfectly with this long-standing strategy,” Mark Patterson, Chief Strategy Officer, Cisco, said.
On the other hand, the developers of foundation AI models, namely Cohere and Mistral, are purportedly engaged in discussions with potential investors to secure funding at valuations of $5 billion each.
Foundation AI models represent a significant advancement in the field of AI, characterised by their construction using extensive datasets and the capacity for application across a diverse array of use cases. The foundational role played by these models underscores their potential to revolutionize numerous sectors through innovative solutions.
Proactive engagement
The genesis of the recent surge in AI investment can be attributed to Microsoft-backed OpenAI’s introduction of ChatGPT in 2022, which acted as a catalyst for intensified interest in AI technologies.
In the wake of this development, tech giants like Meta and Amazon have initiated their forays into the domain by investing in various AI startups, thereby enriching the landscape of AI innovation and entrepreneurship.
Cisco’s proactive engagement with AI is not a newfound endeavour, as the company has undertaken over 20 acquisitions and investments in the AI domain in recent years. This concerted effort underscores Cisco’s commitment to advancing generative AI, machine learning capabilities, and the seamless integration of AI technologies across its diverse portfolio.
By aligning its strategic investments with the burgeoning AI sector, Cisco is positioning itself at the vanguard of technological innovation and paving the way for transformative advancements in AI-enabled solutions.