US-based Cisco launches $1 billion Global AI Investment Fund

Cisco Investments, the global corporate venture investment arm of Cisco, has launched a $1 billion AI investment fund to boost the startup ecosystem and advance the development of secure and reliable AI solutions.

The fund aims to enhance customers' AI readiness and support Cisco's AI innovation strategy.

Cisco has already committed nearly $200 million of the fund to date, investing in companies like Cohere, Mistral AI, and Scale AI.

These investments are part of Cisco's strategy to connect, secure, and power AI while addressing the needs of their customers.

How will Cisco's AI investments impact the industry?

AI is transforming industries worldwide, and Cisco's significant investment underscores the importance of secure and reliable AI solutions.

According to IDC's 2023 research, the global AI market is projected to double to over $500 billion in the next three years. Cisco's investments in generative AI companies like Cohere, Mistral AI, and Scale AI align with this growth trajectory, aiming to enhance products and services.

"For more than 30 years, Cisco Investments has invested and partnered with hundreds of companies to drive innovation both within Cisco's core markets and in new strategic areas," said Mark Patterson, Chief Strategy Officer, Cisco.

Investing in notable AI startups

Cisco's new AI fund includes investments in several notable AI startups. One key investment is in Cohere, a startup with operations in Toronto and San Francisco.

Cohere specializes in providing security-focused large language models (LLMs) and Retrieval-Augmented Generation (RAG) capabilities, which are tailored specifically for enterprise needs.

Another significant investment is in Mistral AI, a company based in Paris. Mistral AI focuses on generative artificial intelligence, creating new models for businesses with a strong emphasis on scientific excellence and a responsible approach to technology.

This investment aligns with Cisco's goal of fostering innovative and ethically sound AI developments.

Cisco has also invested in Scale AI, a U.S.-based company offering a comprehensive, data-centric platform for training and validating AI applications. Cisco's participation in Scale AI's Series F funding round as the largest strategic investor highlights its commitment to supporting end-to-end AI solutions.

Strategic goals with this investment

Cisco's $1 billion AI investment fund is part of a broader strategy to leverage AI's transformative power and maintain its leadership in technology innovation.

Derek Idemoto, SVP of Corporate Development and Cisco Investments, stated, "This fund represents our unwavering commitment to AI and innovation, and to the entrepreneurs and visionaries who are defining the next wave of technology."

Over the past few years, Cisco has made over 20 AI-focused acquisitions and investments, enhancing generative AI and machine learning capabilities across its portfolio. These efforts aim to secure and advance AI applications, providing comprehensive solutions to Cisco's global customers.

Cisco's AI investment fund builds on its long history of innovation through research and development, mergers and acquisitions, and strategic partnerships.

"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 power AI," said Mark Patterson.