Cisco set to invest in CoreWeave at US$23 billion valuation, Bloomberg News reports
The logo of US networks giant Cisco Systems is seen in front of their headquarters in Issy-les-Moulineaux, near Paris, France, on Aug 6, 2022. (Photo: REUTES/Sarah Meyssonnier)
Cisco Systems is set to invest in CoreWeave, valuing the cloud services provider at US$23 billion, according to a Bloomberg News report on Thursday (Oct 3), citing people familiar with the matter.
Nvidia-backed CoreWeave has partnerships with AI startups and competing cloud providers to build clusters designed to power AI workloads.
CoreWeave had discussed a secondary transaction that would allow existing shareholders to sell up to US$500 million worth of shares, Bloomberg News reported in September.
A boom in artificial intelligence applications such as ChatGPT and training of large language models have boosted demand for cloud-computing services.
Big tech firms have been investing heavily to bolster infrastructure to support the development of AI.
Cisco did not immediately respond to a Reuters request for comment, while CoreWeave declined comment.
