Cisco Systems Inc. is making a major move in the AI environment by investing in CoreWeave, a cloud computing firm valued at $23 billion. CoreWeave, founded in 2017 and headquartered in Roseland, New Jersey, has established itself as a prominent participant in the artificial intelligence market by providing cloud solutions customized for compute-intensive workloads such as AI, employing a large array of high-powered GPUs. The company says that its solutions are up to 35 times faster and 80% less expensive than standard public clouds, making them an appealing option for AI-driven enterprises.

Cisco’s investment in CoreWeave is part of the strategy to dominate the AI sector. It made to the headlines in 2023 with its $28 billion acquisition of Splunk, a major player in AI-driven security solutions. Cisco also bolstered its AI portfolio earlier this year with the acquisition of Robust Intelligence, a pioneer in AI security, and its intent to acquire Deeper Insights AI Ltd., a U.K.-based AI services firm. These actions highlight Cisco’s increased emphasis on leveraging AI technology to power its next wave of innovation and expansion.

CoreWeave’s meteoric rise in valuation — from $19 billion in May 2023 to $23 billion just six months later — has garnered significant attention from tech giants and investors alike. Notably, chipmaker Nvidia has already poured over $100 million into the startup. These investments signal CoreWeave’s ambition to disrupt the cloud computing industry, particularly with an IPO anticipated in the first half of 2025, according to the media.

As CoreWeave gears up for a public listing and expands its capabilities, Cisco’s backing could significantly enhance its trajectory in the rapidly evolving AI cloud market.