Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS) on Tuesday launched a $1 billion artificial investment fund that aims to boost the startup ecosystem and support the development of “secure and reliable” AI solutions.
The technology company said as part of the new fund it is making strategic investments in Cohere, Mistral AI and Scale AI among others.
It has committed nearly $200 million of the $1 billion fund to date.
The company added that, in addition to its investments in AI, it will be working with AI companies on product collaborations.
"For more than 30 years, Cisco Investments has invested and partnered with hundreds of companies to drive innovation both within Cisco's core markets and in new strategic areas. Our recent investments in generative AI companies align perfectly with this long-standing strategy," Cisco chief strategy officer Mark Patterson commented.
Shares of Cisco traded higher post-announcement, up 1.9% at $47.53 on Tuesday afternoon.