FILE PHOTO: The logo of U.S. networks giant Cisco Systems is seen in front of their headquarters in Issy-les-Moulineaux, near Paris, France August 6, 2022. REUTES/Sarah Meyssonnier/File Photo

Cisco set to invest in CoreWeave at $23 billion valuation, Bloomberg News reports

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:Cisco Systems is set to invest in CoreWeave, valuing the cloud services provider at $23 billion, according to a Bloomberg News report on Thursday, 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 CEO Michael Intrator had discussed a secondary transaction that would allow existing shareholders to sell up to $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.

Source: Reuters

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