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Cisco (NASDAQ: CSCO) announced on Nov 20, 2025 that its venture arm, Cisco Investments, is investing in World Labs, a spatial intelligence AI startup co‑founded and led by Fei‑Fei Li.

World Labs is developing Large World Models (LWMs) to enable AI to perceive, reason in, and interact with 3D environments. Cisco framed the investment as supporting infrastructure for secure, scalable AI across applications such as gaming, robotics, and physical AI agents.

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News Market Reaction – CSCO

-3.76%
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-3.76% News Effect

On the day this news was published, CSCO declined 3.76%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

World Labs is redefining what's possible by giving AI the ability to generate, reason within, and interact with 3D worlds

News Summary

  • Cisco Investments is investing in World Labs, which aims to accelerate the development of Large World Models (LWMs) that enable AI systems that can perceive, understand, and interact with the physical world in 3D.
  • World Labs is at the frontier of spatial intelligence, developing foundational AI models that bridge the gap between virtual and real-world environments.
  • This investment underscores Cisco's role as the critical infrastructure provider for the AI era.

SAN JOSE, Calif., Nov. 20, 2025 /PRNewswire/ -- Cisco (NASDAQ: CSCO) today announced that Cisco Investments, its venture capital arm, is investing in World Labs Technologies, Inc., a spatial intelligence AI startup. Founded by Dr. Fei-Fei Li, a renowned computer vision pioneer often called the "godmother of AI," World Labs is driving the next paradigm shift in artificial intelligence. The company enables machines to understand and interact with 3D environments using human-like spatial intelligence, with the potential to transform industries such as gaming and robotics. This marks World Lab's largest strategic investment to date.

"The next great platform evolution in AI will be built around spatial intelligence," said Jeetu Patel, President and Chief Product Officer, Cisco. "By joining Fei-Fei and the world-class World Labs team on this journey, we are accelerating the development of a future where AI takes an active role in the physical environment with agents and devices capable of transforming industries, augmenting human capacity, and driving massive gains in productivity."

"World Labs is driven by a single passion: advancing AI to augment human potential and deliver real-world impact," said Fei-Fei Li, Co-founder and CEO, World Labs. "Cisco's leadership in secure, scalable infrastructure is a critical enabler for the next generation of AI and the evolution of physical AI. We are thrilled to work with them as we bring our vision to life."

"The evolution of AI from linguistic intelligence to spatial intelligence marks the next revolutionary leap, as models move beyond understanding language to reasoning about, generating, and interacting with the physical world. World Labs is pioneering this frontier with Large World Models," said Martin Casado, General Partner at a16z. "We've long shared Fei-Fei's vision for spatial intelligence and see huge potential for changing how AI engages with the world. Cisco's investment reflects the importance of secure, scalable infrastructure in advancing this new era of AI."

This strategic investment in World Labs underscores Cisco's commitment to its multi-pronged innovation strategy encompassing R&D, investments, M&A, and strategic partnerships across the AI landscape. By supporting World Labs' pioneering work in developing LWMs, Cisco continues to reinforce its role as the critical infrastructure provider for the AI era, empowering customers globally to harness the power of secure, reliable, and trustworthy AI across digital and physical applications.

About Cisco 
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on the Cisco Newsroom. 

Forward-Looking Statements 

This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding Cisco's future financial or business performance, strategies or expectations. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, the ability of Cisco to achieve expected benefits of its investments, business and economic conditions and growth trends, increased competition, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and 10-Q, respectively. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.

FAQ

What did Cisco announce about its investment in World Labs (CSCO) on Nov 20, 2025?

Cisco said Cisco Investments is investing in World Labs to support development of Large World Models (LWMs) for 3D spatial intelligence.

Who leads World Labs and what is their role in the Nov 20, 2025 Cisco announcement?

World Labs is co‑founded and led by Fei‑Fei Li, who is quoted as CEO in the announcement.

How did Cisco describe the strategic purpose of investing in World Labs (CSCO)?

Cisco described the investment as reinforcing its role as a critical infrastructure provider for secure, scalable AI and enabling physical AI applications.

Which applications did Cisco mention that could be affected by World Labs' spatial intelligence work?

The announcement specifically mentioned potential transformation in gaming and robotics through AI that understands 3D environments.

Does the Cisco announcement provide financial terms or investment size for the World Labs deal?

No financial terms or investment size were disclosed in the announcement.

What technology term did Cisco and World Labs use to describe the new class of models in the Nov 20, 2025 release?

They referred to the technology as Large World Models (LWMs), intended to enable spatial intelligence in AI.
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