Cisco unveils AI-focused chip to link massive data centers
Cisco Systems has introduced a new networking chip, the P200, designed to connect large-scale AI data centers across vast distances. The technology, which will power a new generation of high-capacity routers, has already attracted major clients including Microsoft Azure and Alibaba Cloud, the company announced Wednesday.
The P200 aims to solve a growing challenge in artificial intelligence — connecting geographically distant data centers so they can operate as one massive computing system. “AI training jobs are now so large, they require multiple data centers working together — even a thousand miles apart,” said Martin Lund, Cisco’s executive vice president of common hardware.
The chip consolidates what previously required 92 separate components into one, allowing routers to use 65% less power. Cisco said the innovation helps AI firms manage rising energy demands as data centers spread to regions such as Texas and Louisiana, where electricity is more abundant.
The P200 will compete directly with Broadcom’s networking chips, offering faster data synchronization and more efficient buffering technology, a crucial feature for ensuring AI workloads remain stable across distributed systems.
Industry leaders including Microsoft’s Dave Maltz praised the move, saying the chip provides “faster networks with more buffering to absorb bursts of data,” critical for scaling AI operations. Cisco did not disclose investment costs or revenue expectations but said the chip represents a major leap in AI infrastructure efficiency.
