Cisco Starts $1B Fund to Fuel AI Startup Investments

Cisco launched a $1 billion fund on this week to invest in AI startups, joining other major tech firms in targeting small AI companies. Through its investment arm, Cisco has already committed nearly $200 million to firms like Cohere, Mistral AI, and Scale AI. Scale AI, an AI data startup, is valued at nearly $14 billion, while Cohere and Mistral AI are each seeking valuations of $5 billion.

Foundation AI models, built from large data volumes, have diverse applications. Following the AI surge initiated by Microsoft-backed OpenAI’s ChatGPT in 2022, companies like Meta and Amazon have also invested in AI startups. Cisco has made over 20 AI-focused acquisitions and investments in recent years, advancing generative AI, machine learning, and AI integration across its portfolio.

Featured image: Credit: Cisco