Cisco Invests in Spatial Intelligence Pioneer World Labs

Rhea-AI Summary

Cisco (NASDAQ: CSCO) announced on Nov 20, 2025 that its venture arm, Cisco Investments, is investing in spatial intelligence startup World Labs. World Labs, co-founded by Dr. Fei-Fei Li, develops Large World Models (LWMs) to enable AI to perceive, reason within, and interact with 3D physical environments.

The strategic investment is described as World Labs' largest to date and positions Cisco as a critical infrastructure partner for AI that bridges virtual and real-world applications, with potential industry impacts in gaming, robotics, and device/agent automation.

Insights

Corporate Strategy Analyst

Cisco's venture investment in World Labs is a strategic bet on spatial AI infrastructure with measurable partnership and execution risks.

Cisco's capital injection into World Labs links its infrastructure capabilities to the development of Large World Models, creating a clear business mechanism: Cisco supplies secure, scalable networking and cloud infrastructure while World Labs advances 3D spatial intelligence models that can be embedded into devices and services. The deal aligns Cisco's innovation strategy across R&D, investments, M&A, and partnerships and signals a push toward integrating physical‑world AI into customer solutions.

Dependencies and risks include World Labs' technical delivery of LWMs at scale, integration complexity with Cisco platforms, and the timetable for real‑world adoption; these remain uncertain from the disclosed facts. Watch for concrete milestones such as product integrations, pilot deployments, or formal commercial partnerships announced by Cisco or World Labs over the next 12–24 months and any security or compliance statements tied to deployment on or through Cisco infrastructure.

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.

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SOURCE Cisco Systems, Inc.

FAQ

What did Cisco announce about World Labs on Nov 20, 2025 regarding CSCO?

Cisco announced that Cisco Investments is investing in World Labs to support development of Large World Models.

Who founded World Labs and what technology are they developing relevant to CSCO investors?

World Labs was co-founded by Dr. Fei-Fei Li and is developing spatial intelligence and Large World Models for 3D AI interaction.

How does Cisco describe the strategic importance of the World Labs investment for CSCO shareholders?

Cisco frames the investment as reinforcing its role as the critical infrastructure provider for AI and accelerating physical-AI development.

Which industries did Cisco highlight as potential beneficiaries of World Labs' LWMs?

Cisco highlighted gaming and robotics as industries that could be transformed by spatial intelligence and LWMs.

Does the announcement specify financial terms or valuation for the Cisco investment in World Labs?

No; the announcement does not disclose financial terms, valuation, or stake details.