Cisco is planning to acquire NeuralFabric, a Seattle-based enterprise AI platform that solves one of today’s biggest challenges: how to build powerful AI systems while keeping full control over data, compliance and deployment. With only 13% of companies fully ready for AI, according to Cisco’s 2025 AI Readiness Index, the gap between ambition and execution is still wide.
NeuralFabric changes that. The company has developed a platform for creating domain-specific Small Language Models trained on a company’s own data, deployable both in SaaS and on-prem environments. This aligns directly with Cisco’s AI Canvas vision—purpose-built models, intelligent interfaces, and tools designed for real operational needs rather than generic internet-trained chatbots.
The acquisition brings top engineering talent and tech that strengthens Cisco’s work in modular SLM development, data privacy, distributed systems, and adaptive compliance. Once integrated into Cisco’s AI Software and Platform organization, NeuralFabric will help customers build, train, and deploy AI models faster and with greater control.
The deal is expected to close in Q2 FY2026. Until then, both companies operate independently—but the direction is clear: AI for enterprises must be secure, practical, and purpose-built.
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