Nvidia Corp, the unparalleled supplier of chips for artificial intelligence (AI) computing, is making broad moves to ease businesses’ deployment of AI systems.
On Tuesday, the company announced that it would deepen its partnership with networking gear maker Cisco Systems Inc. to help relieve the headaches that many corporations are experiencing when integrating AI into their data centers.
However, many businesses are still reluctant to implement these systems due to the complex challenges of updating their infrastructure. In a joint announcement issued earlier today, Nvidia and Cisco noted their goal of expanding the availability of products that combine their technologies, simplifying the path for advancing AI capabilities within any organization.
Nvidia and Cisco expand AI infrastructure to simplify enterprise adoption
Nvidia has launched some networking add-ons for its AI server hardware under the Spectrum-X Ethernet banner. This line will soon onboard Cisco chips tailored to run advanced connectivity functions, such as optimizing enterprise data centers.
Cisco CEO Chuck Robbins said enterprises are under sustained pressure to roll out AI fast and well, noting that many leaders balk at the expense while the risks of that investment seem insurmountable. Cisco and Nvidia are working together to break down barriers for customers, allowing them to make the most of their infrastructure investments and realize AI’s full potential, he said.
The construction of AI data centers has historically been the domain of a handful of big-name companies called hyperscalers, like Microsoft Corp. and Amazon.com Inc. These companies have enormous engineering horsepower that enables them to design and build specialized machines for AI. Nvidia’s new push aims to democratize AI technology beyond this elite group and into the broader economy, specifically at a wide range of companies and governmental organizations that rely on Cisco’s networking tools.
For Cisco, which has struggled to make inroads into the hyperscaler market, the partnership enables it to solicit a bigger chunk of runaway AI spending. Equally, using the Silicon emits designed by Cisco and Nvidia’s professional networking system will increase their offers’ competitiveness against their opponents’ popular goods, for example, Broadcom Inc.
These developments position Nvidia and Cisco to help drive the AI revolution across industries, enabling enterprises to navigate the complexities of today’s data center landscape while harnessing the power of this emerging paradigm to power innovation.
Cisco reduces workforce by 4,000 amid AI transition
At the end of 2024, Cisco cut thousands of jobs in a second round of layoffs that year as the US networking equipment maker shifted focus to higher-growth areas, including cybersecurity and AI, people familiar with the matter said.
The number of people affected was similar to or slightly higher than the 4,000 employees Cisco laid off in February of the same year. Cisco, the largest maker of routers and switches that direct internet traffic, has been grappling with sluggish demand and supply-chain constraints in its mainstay business.
The company has been trying to incorporate AI products into its offerings and reiterated its target of $1 billion worth of AI product orders in 2025 in May 2024. In June 2024, it launched a $1-billion fund to invest in AI startups such as Cohere, Mistral AI, and Scale AI. The company said at the time it had made 20 AI-focused acquisitions and investments in the last several years.
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