On Tuesday, Cisco (CSCO.O) announced the launch of a $1 billion fund dedicated to investing in artificial intelligence startups, joining the ranks of major technology firms eager to support emerging AI companies.
The company, through its investment arm, has already allocated nearly $200 million from the fund to invest in startups such as Cohere, Mistral AI, and Scale AI.
Scale AI, a startup focused on AI data, holds a valuation close to $14 billion, while Cohere and Mistral, developers of foundational AI models, are reportedly in discussions with investors to raise funds at valuations of $5 billion each. Foundation AI models, constructed using vast datasets, have broad applications across various industries.
Following the lead of Microsoft-backed OpenAI’s ChatGPT launch in 2022, other tech giants like Meta (META.O) and Amazon (AMZN.O) have also been actively investing in AI startups.
Cisco highlighted its commitment to AI advancement, citing over 20 AI-focused acquisitions and investments made in recent years. These efforts aim to bolster generative AI, machine learning, and the integration of AI technologies across Cisco’s product portfolio, according to a company statement.
