Global leader in networking and telecommunications technology, Cisco Systems (CSCO.O) is planning to invest in CoreWeave, a cloud services provider, valuing the company at $23 billion, according to a sources familiar with the matter. CoreWeave, which is backed by Nvidia (NVDA.O), has formed partnerships with AI startups and competing cloud providers to build clusters designed for AI workloads.

In September, CoreWeave’s CEO Michael Intrator discussed a secondary transaction that would allow existing shareholders to sell up to $500 million worth of shares, as reported by Bloomberg News.

The rising demand for AI-driven applications, such as ChatGPT, and the training of large language models has significantly increased the need for cloud computing services. In response, major tech companies have been ramping up their investments in infrastructure to support AI development.