Athira Sethu
Bengaluru, 4 October 2024
Leading networking hardware company Cisco Systems will invest in the cloud services provider, CoreWeave, at a valuation of $23 billion, Bloomberg reported citing sources.
CoreWeave, backed by Nvidia, has teamed up with a couple of the AI start-ups and the cloud providers. Along with that, the company is trying to create those powerful clusters which are designed especially for AI tasks.
With the advent of generative AI tools like ChatGPT, demand for AI technologies has seen an upward trend. Such trend has pushed up demand for cloud computing services.
In September, Michael Intrator, CoreWeave’s CEO, has said that a secondary transaction was planned that would enable existing shareholders to sell up to $500 million in shares.
Hence, going by such interests, it can be said that the interest in the company’s future as well as that of the AI sector continues unabated, the report pointed out.
Both Cisco and CoreWeave have not provided any comment on the proposed investment, the report said.
Notably, there is a greater demand for AI technologies and, correspondingly, investments in firms like CoreWeave underscore the readiness of big tech firms to invest in building the infrastructure that will ensure future improvements in artificial intelligence.
