Cisco Eyes Major Investment In CoreWeave, Valuing Cloud Provider At $23 Bn

Cisco Systems is ready to invest in CoreWeave, a cloud services business backed by Nvidia, for USD 23 billion, according to Bloomberg News.

Cisco Systems' proposed investment in CoreWeave, which specialises in AI-focused cloud services, comes at a time when major IT companies are scrambling to upgrade their infrastructure to keep up with the rise in artificial intelligence applications. CoreWeave has formed relationships with AI companies and cloud providers to create computing clusters specifically tailored to handle AI workloads.

Nvidia, one of CoreWeave's primary investors, has been instrumental in propelling the company's growth as AI usage skyrockets across industries. In September, CoreWeave CEO Michael Intrator declared a prospective secondary deal in which existing owners might sell up to USD 500 million in shares, indicating the company's strong valuation and investor interest.

The AI boom has created unprecedented demand for cloud computing services, with key firms such as Cisco investing extensively to improve their capabilities to handle the increasingly sophisticated processing requirements of AI development. Neither Cisco nor CoreWeave commented on the alleged investment, with Cisco declining to react to queries and CoreWeave remaining silent.