The AI revolution faces a critical hurdle: translating cutting-edge research into practical enterprise solutions. Cisco aims to bridge this gap with a $1 billion AI investment fund focused on secure, scalable solutions.
This initiative goes beyond mere financial muscle, emphasizes CEO Chuck Robbins. Collaboration and co-innovation are central to Cisco’s strategy, positioning them as a platform-agnostic player in the AI ecosystem.
“Another billion-dollar AI investment?” Robbins acknowledges industry fatigue. “Our approach is different.”
The fund isn’t just about cash, emphasizes CEO Chuck Robbins. Collaboration and co-innovation are key, positioning Cisco as a neutral platform player in the AI ecosystem.
“Another billion in AI?” yawns Robbins, referring to industry fatigue with such announcements. “We’re taking a different approach.”
Cisco seeks partnerships with “unique characteristics,” partnering for co-development rather than passive investment.
“We aim to co-create innovative solutions and help navigate your AI transition,” Robbins explained at Cisco Live.
Generative AI (Gen AI) has massive potential, with projections of a $137 billion market by 2030.
Having already earmarked nearly $200 million from its $1 billion fund, Cisco extends support to Mistral AI – a formidable contender in the U.S. gen AI market. Simultaneously, Cohere secures significant funding alongside industry giants like Nvidia and Salesforce Ventures for its security-centric large language models (LLMs) and advanced retrieval-augmented generation (RAG) capabilities.
A key investment is Mistral AI, an OpenAI competitor founded by ex-Meta and Google DeepMind scientists. Targeting the US market, Mistral is reportedly nearing a $600 million funding round, valuing them at $6 billion.
Cisco joins Nvidia, Salesforce Ventures, and PSP Investments in a $450 million funding round for Cohere. This investment values the company at $5 billion and strengthens their focus on security-oriented LLMs and retrieval-augmented generation (RAG) technology.
Scale AI, a company providing training and validation for AI applications, also receives Cisco’s backing. In eight years, Scale AI claims to have completed 13 billion annotations and labeled 37 million Gen AI data points. Their $1 billion Series F round secured a $13.8 billion valuation.
“AI is advancing at an unprecedented pace,” Robbins underscored during his keynote. He compared the current landscape to other emerging technologies like cloud, 5G, and the metaverse.