NEW DELHI: US telecom equipment maker Cisco’s venture capital arm Cisco has launched a $1 billion fund to invest in the startup ecosystem and expand the development of secure and reliable artificial intelligence (AI) solutions.
As part of the recent AI fund, Cisco is making strategic investments in Cohere, Mistral AI and Scale AI, among others, to “boost customer AI readiness and complement Cisco’s AI innovation strategy,” the U.S.-based vendor said Tuesday . The announcement comes on the heels of Cisco’s acquisition of artificial intelligence and cybersecurity company Splunk in a deal valued at $28 billion.
Cisco said it has so far committed nearly $200 million of its $1 billion investment fund.
“Our recent investments in generative AI companies align perfectly with this long-term strategy,” said Mark Patterson, Cisco’s chief strategy officer. “At Cisco, we believe we are well-positioned to be the best strategic partner for our customers in the AI era as they look to build, secure and support AI.”
Additionally, Patterson said Cisco is committed to investing in the broader AI ecosystem to effectively meet customer needs.
According to the company, it has made more than 20 AI-related acquisitions and investments over the past few years, expanding GenAI and machine learning capabilities and integrating AI across Cisco’s portfolio.
“The establishment of our $1 billion Artificial Intelligence Investment Fund is a testament to our commitment to the transformative power of AI and its potential to redefine industries around the world,” said Derek Idemoto, vice president of corporate development and Cisco Investments. “This fund represents our unwavering commitment to artificial intelligence and innovation, and to the entrepreneurs and visionaries who are defining the next wave of technology.”
A 2023 study by the International Data Corporation (IDC) found that the global AI market is expected to double to over $500 billion in the next three years.
Enterprises, including Cisco, have the opportunity to exploit generative artificial intelligence to significantly improve their products and services and better serve customers and end users, the networking developer said.
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