Cisco set to invest in CoreWeave at $23 billion valuation, Bloomberg News reports (Oct. 3)
2024.10.04 10:20
(This Oct. 3 story has been corrected to drop reference to CEO Michael Intrator in paragraph 3)
(Reuters) – Cisco Systems (NASDAQ:) 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 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.
