Cisco Systems (CSCO.O) plans to invest in CoreWeave, valuing the cloud services provider at $23 billion, Bloomberg News reported on Thursday, citing sources.
CoreWeave, backed by Nvidia (NVDA.O), collaborates with AI startups and competing cloud providers to create clusters designed for AI workloads. In September, Bloomberg reported that CoreWeave CEO Michael Intrator had discussed a secondary transaction allowing existing shareholders to sell up to $500 million worth of shares.
The surge in artificial intelligence applications, such as ChatGPT and the training of large language models, has increased demand for cloud-computing services. Major tech firms are investing heavily to enhance their infrastructure for AI development.
Cisco did not immediately respond to Reuters’ request for comment, while CoreWeave declined to comment.
