Nvidia and Cisco Join Forces to Bring AI Technology to More Businesses

Nvidia Corp NVDA has partnered with Cisco Systems Inc CSCO to facilitate the development of corporate AI computing infrastructures, broadening the accessibility of AI technology beyond major data-center operators. 

This collaboration, unveiled on Tuesday, allows Cisco to integrate Nvidia’s AI-focused technology with its networking solutions. 

The partnership enhances Nvidia’s distribution channels and enables Cisco to leverage the ongoing AI investment surge that has elevated Nvidia to the status of the most valuable chipmaker globally, Bloomberg reports.

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Nvidia CEO Jensen Huang expressed enthusiasm about simplifying access to AI infrastructure for enterprises, calling AI the most potent technological force of the era. 

Cisco plans to offer its M7 server computers powered by Nvidia’s cutting-edge processors, complemented by Nvidia’s software, AI models, and development tools. Additionally, Cisco will provide cloud-based software and services for these systems’ oversight and management.

The announcement at Cisco Live in Amsterdam aims to decentralize AI hardware deployment, which mainly catered to data centers owned by tech giants like Microsoft Corp MSFT, Amazon.Com Inc AMZN, Alphabet Inc GOOG GOOGL Google, and Meta Platforms Inc META. 

This strategy addresses Nvidia’s risk of over-reliance on a few large clients exploring or adopting their chip technologies. 

By partnering with Cisco, Nvidia secures an avenue to a broader client base, offering solutions that align with the widely used Ethernet networking standard, contrasting Nvidia’s InfiniBand alternative in data transfer technology.

Price Actions: CSCO shares are trading higher by 0.55% to $49.78 premarket on the last check Tuesday. NVDA shares traded higher by 1.24% at $701.88.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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