Tech giant Cisco launches $1bn AI fund to power innovative solutions

Cisco Investments, the venture capital arm of networking giant Cisco, has launched a $1bn fund dedicated to accelerating the development of secure and reliable artificial intelligence (AI) solutions.

The initiative reflects the global networking company’s efforts to foster the global AI ecosystem and empower businesses to capitalise on AI’s offerings.

Cisco has already committed nearly $200m 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,” said Mark Patterson, chief strategy officer at Cisco. “This investment aligns perfectly with our long-standing strategy of supporting innovation through partnerships and investments.”

Highlighting the exponential growth of the AI market, the tech giant cited research from IDC (2023) predicting a doubling in size to over $500bn within the next three years. This presents a significant opportunity for companies like Cisco to leverage generative AI (GenAI) and enhance their offerings, ultimately benefiting customers and end-users.

Cisco emphasises its comprehensive approach to AI advancement

In addition to the investment fund, the company boasts over 20 AI-focused acquisitions and investments made over the past several years. This commitment includes partnerships with leading AI platforms across software and infrastructure.

The networking company further clarifies its role as an “agnostic provider and platform player” in AI. Beyond venture capital support, the company intends to collaborate with portfolio companies on product development. This co-innovation strategy will ultimately expand accessibility and options for Cisco’s global customer base.

To help bolster #AI development, Cisco launched a $1 billion startup investment fund. Learn more from @TechTarget on our commitment to #GenAI ➡️ https://t.co/9AcfhcC6CX#CiscoLive pic.twitter.com/XLZguPLUEq

— Cisco (@Cisco) June 10, 2024

Cohere, Mistral AI and Scale AI

The announcement from Cisco revealed specific investments from the new fund, highlighting three key players: Cohere, a Toronto and San Francisco-based company, specialises in secure, enterprise-grade large language models (LLMs) and retrieval-augmented generation (RAG) capabilities; Mistral AI, a global leader in generative AI and headquartered in Paris, focuses on developing innovative models for businesses, prioritising scientific excellence and responsible technology. The third, Scale AI is a US-based company offering a comprehensive platform for training and validating AI applications.

The tech giant recently participated as the lead strategic investor in Scale AI’s Series F funding 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 giant completed its acquisition of software company Splunk in a deal valued at approximately $28bn.

The move unites two industry leaders and promises significant benefits for customers, partners and developers.