NVIDIA and Cisco have announced a partnership aimed at expanding the accessibility of AI technology beyond major data center operators. By integrating NVIDIA’s AI-focused technology with Cisco’s networking solutions, the collaboration seeks to decentralize AI deployment and enhance global AI infrastructure access. The partnership will enable Cisco to leverage NVIDIA’s expertise in AI and benefit from the ongoing AI investment surge that has made NVIDIA the world’s most valuable chipmaker.
The collaboration will see Cisco offering its M7 server computers powered by NVIDIA’s cutting-edge processors, along with NVIDIA’s software, AI models, and development tools. Additionally, Cisco will provide cloud-based software and services to manage and oversee these systems. The partnership not only strengthens NVIDIA’s distribution channels but also allows Cisco to tap into a broader client base and offer solutions that align with widely used Ethernet networking standards.
This move addresses NVIDIA’s risk of relying too heavily on a few large clients in terms of chip technology adoption. Rather than catering primarily to data centers owned by tech giants like Microsoft, Amazon, Google, and Meta, the partnership with Cisco broadens NVIDIA’s reach and ensures a more diverse customer base.
Speaking about the collaboration, Jensen Huang, the CEO of NVIDIA, expressed enthusiasm for simplifying access to AI infrastructure for enterprises. He believes that AI is the most potent technological force of the era, and this partnership will make AI more readily available to businesses.
The announcement comes at a time when AI technology is rapidly advancing and businesses from various industries are looking to incorporate AI into their operations. By collaborating, NVIDIA and Cisco aim to accelerate the development of corporate AI computing infrastructures and facilitate wider adoption of AI technologies across different sectors.
In terms of market response, the news has already had a positive impact on the stocks of both companies. Cisco’s shares rose by 0.55% to $49.78 in premarket trading, while NVIDIA’s shares traded higher by 1.24% at $701.88.
Overall, the partnership between NVIDIA and Cisco represents a significant step toward decentralizing AI deployment and making AI technology more accessible to businesses worldwide. With their combined expertise, the two companies hope to enhance global AI infrastructure and empower enterprises to leverage the potential of AI for their growth and innovation.