Cisco (Nasdaq:CSCO) Investing $500 Million in Silicon Valley Rival

Cisco (Nasdaq:CSCO) has committed $500 million to the plan of British Prime minister David Cameron, who seeks to develop a Silicon Valley rival in the East End of London.

Cameron responded saying, "This will help create many new jobs and opportunities and support our drive to diversify our economy and generate sustainable economic growth.

"Cisco's goal is a fantastic example of how business is turning this vision into reality, with east London set to become a leading Tech City."

The money from Cisco will be spend over the long term, and will help support what is being called an "accelorator" space, which will be used for office space for companies emerging out of the project.

Cisco closed Tuesday at $21.47, gaining $0.32, or 1.51 percent.