Cisco Systems is in talks to invest in fast-growing cloud AI startup CoreWeave, Bloomberg reports. CoreWeave, currently valued at $23 billion, is said to be considering an initial public offering (IPO) in the first half of 2025.
Investors in CoreWeave include NVIDIA, Magnetar Capital, Coatue Management, Jane Street, and Fidelity.
Apart from Cisco, early investors of CoreWeave include Nvidia, Magnetar Capital, Coatue Management, Jane Street, and Fidelity. Earlier this year, CoreWeave raised $7.5 billion in debt from financiers led by Blackstone.
In recent years Cisco has taken several steps to strengthen its position in the AI market. In addition to the potential investment in CoreWeave, the company has also made major acquisitions, such as AI observability platform Splunk and Robust Intelligence. These acquisitions demonstrate the seriousness of Cisco in building a comprehensive AI portfolio.
In June, Cisco’s global corporate venture investment division Cisco Investments announced a new $1bn fund dedicated to AI startups.
This initiative is designed to to bolster the startup ecosystem and expand the development of secure and reliable AI solutions.
As part of this AI fund, Cisco has already made strategic investments in several AI-focused companies, including Mistral AI, Cohere, and Scale AI.
