Cisco has announced plans to acquire Seattle-based NeuralFabric Corp., a move that underscores the accelerating shift toward highly specialized enterprise AI and the growing demand for secure, domain-specific model development.
The deal—expected to close in 2026—targets one of the most pressing challenges in enterprise technology: how companies can deploy advanced AI while maintaining sovereignty over proprietary data, navigating tightening regulatory environments, and optimizing limited graphics processing unit (GPU) resources. According to Cisco’s 2025 AI Readiness Index, only 13% of organizations report being fully prepared to operationalize AI at scale, a readiness gap Cisco aims to narrow.
NeuralFabric’s core technology is an end-to-end platform that enables organizations to develop small language models (SLMs) trained on their own proprietary datasets. Unlike large general-purpose chatbots trained broadly on internet data, SLMs focus on domain-specific intelligence with tighter control, lower inference costs, and improved compliance characteristics. NeuralFabric supports both SaaS and on-premise deployments—an increasingly important requirement for enterprises balancing cloud flexibility with regulatory obligations.
Cisco says NeuralFabric’s platform will become a foundational component of Cisco AI Canvas, the generative UI collaborative workspace the company unveiled earlier this year. AI Canvas combines SLMs, generative UI, and Cisco’s domain-specific Deep Network Model to create context-aware workflows for teams that operate across disparate data domains.
The acquisition fits squarely into Cisco’s broader effort to build a cohesive enterprise AI stack. In recent months, the company has launched its Security Reasoning Model for AI-assisted cybersecurity, advanced its Cisco Data Fabric architecture to break down data silos, and expanded the Cisco AI Assistant portfolio.
DJ Sampath, Senior Vice President at Cisco, said the NeuralFabric acquisition strengthens these efforts by bringing expertise in distributed systems, large-scale data pipelines, and modular AI architectures engineered for real-world enterprise conditions. NeuralFabric’s platform also includes predictive use-case modeling and proactive compliance monitoring—capabilities designed to adapt models to evolving industry regulations and operational patterns.
The NeuralFabric team will join Cisco’s AI Software and Platform organization following the close of the transaction.