Cisco Eyes CoreWeave Investment to Boost AI Cloud Dominance
AInvestThursday, Oct 3, 2024 11:00 pm ET
1min read
CSCO --
NVDA --

Cisco Systems is reportedly nearing an investment in CoreWeave, a cloud computing provider rapidly gaining traction in the AI sector, with the valuation set at an impressive $23 billion. This move underscores CoreWeave's burgeoning status as a key player in high-performance computing, driven by its strategic use of Nvidia's data center graphics chips.

CoreWeave initially pivoted from cryptocurrency mining to offering scalable cloud computing solutions, capitalizing on its robust relationship with Nvidia. This established connection allowed CoreWeave to secure significant supplies of the in-demand H100 graphics cards during shortages, further solidifying its competitive edge.

Cisco seeks to leverage CoreWeave's capabilities to enhance its own cloud service offerings amid rapid data center expansion. This strategic alignment reflects Cisco's intent to tap into the booming demand for AI-driven cloud services, positioning itself in a market with escalating competition and exponential growth.

The exact terms of Cisco's investment and the stakes acquired remain undisclosed, and official statements from both companies are still pending. However, the investment signals confidence in CoreWeave’s growth trajectory and the increasing valuation highlights the market’s recognition of the intrinsic value and potential within cloud infrastructure providers.

This development not only exemplifies Cisco's dedication to broadening its cloud influence but also spotlights the escalating investor interest in cloud providers positioned at the forefront of AI technology advancement.

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