In Short:
Cisco Systems plans to invest in CoreWeave, a cloud services provider valued at $23 billion. CoreWeave, supported by Nvidia, works with AI startups to enhance cloud computing for AI tasks. There are talks for existing shareholders to sell up to $500 million in shares. The surge in AI applications like ChatGPT has increased demand for these services. Cisco and CoreWeave did not comment on the news.
Cisco Systems is poised to make a significant investment in CoreWeave, which has been valued at $23 billion, as reported by Bloomberg News on Thursday, citing sources familiar with the situation.
CoreWeave’s AI Ventures
CoreWeave, backed by Nvidia, has established partnerships with numerous AI startups and competing cloud providers. These collaborations aim to create clusters specifically designed to support AI workloads.
Shareholder Transactions
Recently, Michael Intrator, the CEO of CoreWeave, discussed a secondary transaction that would facilitate existing shareholders in selling shares worth up to $500 million, according to a Bloomberg News report from September.
Increased Demand for Cloud Services
The surge in demand for cloud-computing services can be attributed to the rising use of artificial intelligence applications, including ChatGPT, and the training of large language models. Major technology firms are increasing their investments to enhance infrastructure that supports AI development.
At this time, Cisco has not responded to a request for comment from Reuters, and CoreWeave has also chosen not to provide comments on the matter.
