# Cisco signs over $10bn AI infrastructure deals amid competition from Nvidia

Digest AI · Hardware & Compute · published 2026-09-24T05:41:01Z

Canonical: https://digestai.news/story/cisco-signs-over-10bn-ai-infrastructure-deals-amid-competition-from-nv

## Summary

Cisco says it has signed AI‑infrastructure contracts worth more than $10bn this fiscal year with hyperscalers and emerging "neocloud" providers. President and chief product officer Jeetu Patel explained that the company’s advantage lies in its vertically integrated stack – it designs its own silicon, photonics, optics and software, positioning itself like "Apple for infrastructure." He noted that rivals such as Nvidia are moving into optical switches, creating a competitive dynamic where partners can also become competitors.

Patel highlighted strong financial momentum, with bookings up 35% and revenue up 18% in the last quarter, and an $8bn R&D budget for the year. Cisco aims to have one product fully written by AI now and plans for six more by year‑end, targeting 70% of its software portfolio AI‑generated by next year and 100% in two years. He warned that while the AI surge may feel like a bubble, it also represents a secular shift, and the risk of moving too slowly outweighs the risk of over‑capacity.

## Key points

- Cisco signed AI infrastructure deals exceeding $10bn with hyperscalers and neoclouds this fiscal year.
- Bookings grew 35% and revenue 18% in the last quarter; R&D budget is $8bn for the year.
- Cisco targets 100% AI‑written software products by end of next year, with 70% by year‑end.

## Why it matters

Cisco's networking and silicon strategy could set the cost and capacity baseline for large‑scale AI model training, influencing the broader AI hardware market.

## Sources

1. [Q&A with Cisco President and CPO Jeetu Patel on its multibillion-dollar networking deals for AI infrastructure, competition from partners like Nvidia, and more](https://ft.com/content/ade21fa5-3610-48ad-8699-d96afbe85e86) (ft.com, 2026-09-24)

## Cite

Digest AI, "Cisco signs over $10bn AI infrastructure deals amid competition from Nvidia", 24 September 2026, https://digestai.news/story/cisco-signs-over-10bn-ai-infrastructure-deals-amid-competition-from-nv

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