Oct 3 (Reuters) - Cisco Systems ( CSCO ) is set to

invest in CoreWeave, valuing the cloud services provider at $23

billion, according to a Bloomberg News report on Thursday,

citing people familiar with the matter.

Nvidia ( NVDA )-backed CoreWeave has partnerships with AI

startups and competing cloud providers to build clusters

designed to power AI workloads.

CoreWeave had discussed a secondary transaction that would

allow existing shareholders to sell up to $500 million worth of

shares, Bloomberg News reported in September.

A boom in artificial intelligence applications such as

ChatGPT and training of large language models have boosted

demand for cloud-computing services.

Big tech firms have been investing heavily to bolster

infrastructure to support the development of AI.

Cisco ( CSCO ) did not immediately respond to a Reuters request for

comment, while CoreWeave declined comment.