Cisco's Intent to Acquire NeuralFabric (blogs.cisco.com)

Cisco announced its intent to acquire NeuralFabric, a Seattle-based enterprise AI platform, to accelerate delivery of domain-specific Small Language Models (SLMs) that run on proprietary data across SaaS and on-prem environments. The move addresses a major enterprise pain point—only 13% of organizations feel AI-ready—and targets the growing demand for purpose-built models that preserve data sovereignty, meet compliance needs, and operate efficiently amid constrained GPU resources. Technically, NeuralFabric brings an end-to-end generative AI stack for modular SLM development, streamlined training, and flexible deployment, backed by expertise in distributed systems and large-scale data platforms. Its capabilities—continuous learning from real-world data, predictive use-case modeling, and proactive compliance monitoring—will be integrated into Cisco AI Canvas, enhancing Cisco AI Assistant and the domain-specific Deep Network Model, and complementing Cisco’s Security Reasoning Model and Data Fabric. For enterprises this promises faster, more private and compliant model development and deployment; for Cisco it expands enterprise-grade infrastructure and responsible-AI tooling. The teams will join Cisco’s AI Software and Platform organization, with the transaction expected to close in Q2 of fiscal 2026.