Cisco pushes forward on AI with new partnerships & tech advances
Cisco has made a series of moves in recent weeks as it aims to strengthen its relevance and leadership in the artificial intelligence (AI) landscape. From joining a major new AI infrastructure consortium in the Middle East, to unveiling breakthroughs in quantum networking, reporting strong quarterly results, and expanding its board with a leading AI expert, the company is demonstrating a comprehensive approach to the demands of the AI age.
Last month, Cisco revealed that it had joined the Stargate UAE consortium as a preferred technology partner, signing a memorandum of understanding (MoU) with G42, OpenAI, Oracle, NVIDIA, and SoftBank Group. The agreement outlines plans for a significant AI data centre in Abu Dhabi, with an initial target capacity of 200 megawatts due next year and ambitions to scale up to one gigawatt in the future.
"With the right infrastructure in place, AI can transform data into insights that empower every organisation to innovate faster, tackle complex challenges, and deliver tangible outcomes," said Chuck Robbins, Cisco's Chair and Chief Executive Officer. "Cisco is proud to join this consortium to harness the power of AI and deliver the infrastructure that will enable tomorrow's breakthroughs."
Cisco's role in the Stargate UAE project will see the company provide networking, security, and observability solutions to support the deployment of next-generation AI compute clusters. The project, announced during a recent visit from President Trump to the region and highlighted by UAE President His Highness Sheikh Mohammed bin Zayed, is being described by Cisco as a milestone for AI infrastructure development in the Middle East.
The signing ceremony brought together senior leaders from across the technology and political landscape, including Jeetu Patel, President and Chief Product Officer of Cisco, and representatives from the consortium partners as well as members of the UAE's leadership.
The new UAE partnership is one part of a broader push by Cisco to build out its AI capabilities globally, following a series of recent strategic initiatives across the Middle East. The company says it is leveraging its "trusted technology across the region's AI infrastructure buildouts, together with longstanding regional partnerships."
Alongside its expanding AI infrastructure efforts, Cisco also reported robust financial performance for its third quarter, which ended in late April. The company posted revenue of $14.1 billion, an 11% increase compared to the same period last year. Product orders rose 20% year-over-year, and Cisco's AI infrastructure orders from webscale customers surpassed $600 million, reaching its $1 billion target ahead of schedule.
"Cisco once again had strong quarterly results with clear demand for our technologies," said Robbins. "The momentum we are seeing with AI is fuelled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers."
Scott Herren, Cisco's Chief Financial Officer, commented, "Another quarter of solid execution drove revenue, margins and EPS above our guidance ranges. Our innovation positions us well for future growth and our operational discipline is generating strong cash flows, enabling us to deliver significant shareholder returns."
Cisco's third quarter non-GAAP net income was $3.8 billion, with earnings per share of $0.96, up 9% on the previous year. The company also declared a quarterly dividend of $0.41 per common share, to be paid in July.
In corporate governance, Cisco recently appointed Kevin Weil, Chief Product Officer at OpenAI, to its board of directors. Robbins said, "Kevin has an exceptional track record of scaling products to deliver meaningful business value for customers. We are excited to leverage his deep expertise in AI and product innovation to guide our strategic initiatives and accelerate Cisco's growth."
Weil added, "I'm thrilled to join the board of directors at Cisco, a company building the infrastructure necessary to fulfil the promise of AI. I look forward to working with Chuck and the Cisco team to drive impactful solutions and navigate the exciting opportunities ahead."
On the technology front, Cisco has announced a breakthrough with its new Quantum Network Entanglement Chip and the opening of Cisco Quantum Labs in Santa Monica, California. The company describes its approach as helping to bring practical quantum computing closer, noting that the entanglement chip operates at standard telecom wavelengths, functions at room temperature, and achieves a high rate of entanglement pair generation.
At the same time, Cisco is collaborating closely with NVIDIA to deliver secure AI infrastructure, integrating security at all levels of the AI stack. "AI can unlock groundbreaking opportunities for the enterprise. To achieve this, the integration of networking and security is essential," Robbins noted.
Cisco's financial guidance suggests it expects continued revenue growth, with fourth quarter revenue forecast between $14.5 billion and $14.7 billion.
With this series of moves—from high-profile partnerships and board appointments to technology breakthroughs and solid financial performance—Cisco is positioning itself as a central player in the increasingly competitive AI infrastructure and innovation race.
