Cisco establishes a $1 billion AI fund and begins investing

Cisco, opens new tab, joined the throng of large tech corporations racing to acquire shares in start-ups focused on artificial intelligence by launching a $1 billion fund on Tuesday.

The business has already committed up to $200 million of the money through its investment arm, which it is using to invest in companies like Mistral AI, Scale AI, and Cohere, among others.

While so-called foundation model developers Cohere and Mistral are allegedly in negotiations with investors to seek cash at a price of $5 billion apiece, Scale AI, an AI data business, is valued at about $14 billion.

Large amounts of data are used in the development of foundation AI models, which have several applications.

With the release of ChatGPT in 2022, Microsoft-backed OpenAI ignited the AI craze. Since then, a number of tech giants, like Meta and Amazon, have also made investments in AI startups.
According to a statement from the firm, Cisco has made more than 20 investments and acquisitions with an AI focus in recent years, advancing machine learning and generative AI while integrating AI throughout its portfolio.