Cisco Systems, Inc. announced today that it is buying San Francisco artificial intelligence company MindMeld in a deal valued at around US$125 million. The information was passed on by the official blog of the IT giant, in a post by Cisco Corporate Development chief Rob Salvagno.
MindMeld was founded in 2011 and offers solutions that help companies build conversation interfaces with cloud- based services. It also has collaboration technologies. Its portfolio is all AI-based, a trend that is fueling new business for traditional IT players.
MindMeld solutions work with voice commands, something that has also attracted a lot of attention from both businesses and consumers. A large branch can open up there for Cisco in both the end and corporate segments. Many companies are looking for new ways to automate processes with AI and voice commands. Both trends have proven to be excellent man-machine interfaces.
The MindMeld appeared in one of the startup events in the US market. Originally, the company was called Expect Labs and it started with creating apps for iPad. The products could understand conversations and return with relevant contextual information.
The decline in the tablet segment and the evolution of the MindMeld API, focused on analytics, AI and languages, made the startup change their line and gain more prominence. This led the company to raise US$15.4 million in venture capital financing from GV, Greylock Partners, Bessemer Venture Partners and Intel Capital, among others.
With the acquisition, Cisco shows that it is eager to change as well and be recognized in the new wave of IT. The giant bought AppDynamics earlier this year for US$3.7 billion and has already stated that it will in the future be a software and solutions company for IT that involves cloud, analytics, AI and all these new advancements.
“With MindMeld, we will be enhancing our collaboration suite by adding new conversation interfaces for our collaboration products, starting with Cisco Spark,” said Cisco Corporate Development Manager Rob Salvagno on his blog.