Cisco is set to invest in CoreWeave at a $23 billion valuation, Bloomberg News By Reuters reports

(Reuters) – Cisco Systems is 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 is partnering with AI startups and competing cloud providers to build clusters designed to power AI workloads.

CoreWeave CEO Michael Intrator has discussed a secondary transaction that would allow existing shareholders to sell up to $500 million worth of stock, Bloomberg News reported in September.

A boom in artificial intelligence applications such as ChatGPT and the training of large language models have boosted the demand for cloud computing services.

Big tech firms have invested heavily to strengthen the infrastructure to support AI development.

Cisco (NASDAQ: ) did not immediately respond to a Reuters request for comment, while CoreWeave declined to comment.