Nvidia Prepares Major $1 Billion Investment in AI Coding Startup Poolside

Nvidia is reportedly investing up to $1 billion in Poolside | TechCrunch

Semiconductor giant Nvidia is reportedly looking to make a sizable investment in AI software development platform Poolside. Nvidia is looking to invest at least $500 million, and up to $1 billion, in Poolside, which builds AI models for software development, according to reporting from Bloomberg, which cited sources. This investment would be part of a $2 billion funding round Poolside is raising at a $12 billion valuation, according to Bloomberg. Nvidia's investment could rise to $1 billion if the company successfully completes the rest of the funding round, Bloomberg reported. This wouldn't be Nvidia's first investment in Poolside. Nvidia previously backed Poolside in its $500 million Series B round in October 2024. Nvidia, already a prolific investor in AI startups, has been broadening its portfolio to include diverse sectors. For example, Nvidia said it was exploring a $500 million investment into U.K.-based self-driving company Wayve in October. Last month, the company took a $5 billion stake in Intel with plans for future chip collaboration. TechCrunch reached out to Poolside for more information.

Nvidia Plans to Invest Up To $1 Billion in AI Startup Poolside: Report | AIM

Poolside is in talks to raise $2 billion at a $12 billion valuation, excluding prior funding. NVIDIA is reportedly planning to invest up to $1 billion in the AI startup Poolside, aiming to significantly increase the startup's value, according to sources familiar with the situation, Bloomberg said on Thursday. Poolside is currently negotiating to raise $2 billion at a valuation of $12 billion, excluding prior capital raised. Nvidia's previously unreported investment in this funding round is set to begin at $500 million, potentially reaching $1 billion if the startup achieves its fundraising goals, according to one unnamed source. The AI startup has already secured over $1 billion in commitments for the new funding round, including approximately $700 million from existing investors. Additionally, Magnetar, a hedge fund investment manager, is also reportedly looking to invest in this round, according to another source. The new valuation for Poolside marks a significant increase from the $3 billion valuation during a funding round last year. This deal demonstrates strong investor confidence in an AI startup that launched its first product just a year ago. With offices in the US and Paris, Poolside focuses on coding automation aimed at the government and defence sectors. The company also expresses ambitions to develop artificial general intelligence (AGI), a more advanced and theoretical form of AI that is capable of surpassing human intelligence. During his keynote speech at the GTC conference on Tuesday, Nvidia CEO Jensen Huang said, "I'm delighted that AI startups build on Nvidia. They do so for several reasons. One, of course, our ecosystem is rich. Our tools work great." Additionally, the investment fits well with Poolside's ambitious infrastructure goals. Earlier this month, the company revealed a collaboration with CoreWeave Inc. to develop one of the largest data centres in the US, part of a project named Project Horizon. This facility, slated for construction in West Texas, is projected to have a capacity of 2 gigawatts, sufficient to supply power to approximately 1.5 million households.

Nvidia may pour $1 billion into Poolside as part of $2B mega-round

This would mark Nvidia's second investment in the startup, following its participation in Poolside's $500 million Series B funding round in October 2024. Nvidia is reportedly planning to invest at least $500 million, and potentially up to $1 billion, in the AI startup Poolside, according to a new report from Bloomberg. The investment would be part of a massive $2 billion funding round that Poolside is currently raising, which would place the company at a $12 billion valuation. According to sources cited in the report, Nvidia's commitment would begin at $500 million and could increase to the full $1 billion if Poolside successfully completes the rest of its fundraising goal. Poolside, which builds AI models for software development, has already secured over $1 billion in commitments for this new round, with approximately $700 million coming from existing investors. This would mark Nvidia's second investment in the startup, following its participation in Poolside's $500 million Series B funding round in October 2024. This potential nine-figure investment highlights Nvidia's ongoing strategy of aggressively backing a diverse portfolio of AI startups, which in turn drive demand for its advanced GPUs. This year, Nvidia has also explored a $500 million investment in the U.K.-based self-driving company Wayve and recently took a $5 billion stake in its chipmaking rival, Intel, with plans for future collaboration.

Jensen Huang's Nvidia Drops Up To $1B On Poolside -- This Ex-GitHub Exec's AI Powerhouse Just Quadrupled Its Worth Overnight - CoreWeave (NASDAQ:CRWV), NVIDIA (NASDAQ:NVDA)

Nvidia (NASDAQ:NVDA) is preparing to write a check for up to $1 billion to Poolside, an AI startup that has managed to quadruple its valuation in just 12 months, according to Bloomberg. The deal puts Poolside at a $12 billion valuation, up from $3 billion in 2024. Poolside is raising a total of $2 billion, with commitments already exceeding $1 billion, including approximately $700 million from existing investors, people familiar with the matter told Bloomberg Hedge fund Magnetar, known for its asset management business, is also in talks to participate in the funding, Bloomberg reported. Don't Miss: Accredited Investors Can Now Tap Into the $36 Trillion Home Equity Market -- Without Buying a Single Property Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse -- Just $0.81 a Share Former GitHub Executive Builds $12 Billion AI Empire In Two Years Former GitHub executive Jason Warner co-founded Poolside in 2023 with Eiso Kant, establishing offices in both the U.S. and Paris. The company launched its first product, an enterprise software-engineering platform, in 2024. According to Poolside, the system is already being tested in government and defense environments and serves as the foundation for its long-term goal of building artificial general intelligence, a form of AI capable of performing complex tasks across multiple domains. Poolside's platform integrates AI capabilities across multiple environments, including development tools, terminals, agents, and enterprise applications. Its foundation models operate within customer-controlled security boundaries, either on-premises or in Virtual Private Clouds, so sensitive data remains under client management, according to Poolside's website. Nvidia's planned investment begins at $500 million and could expand to $1 billion if fundraising goals are achieved, Bloomberg said. The chipmaker was an earlier backer of Poolside, strengthening its ongoing role in the company's growth. Trending: Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors -- Without the Crowdfunding Middlemen Nvidia Builds AI Ecosystem While Securing Future Customers Nvidia, led by CEO Jensen Huang, has become one of the most valuable public companies while expanding a network of AI ventures that could evolve into long-term partners. Poolside is part of that growing ecosystem and intends to allocate a portion of its new funding toward Nvidia's GB300 chips, Bloomberg reported. Data from PitchBook, cited by Bloomberg, shows Nvidia had invested in 59 AI startups through mid-October, surpassing its total for the previous year. The company also holds stakes in Perplexity AI, an AI search platform, and Figure AI, a robotics developer focused on humanoid systems. "I'm delighted that AI startups build on Nvidia," Huang said during his keynote at Nvidia's GTC conference on Oct. 28 in San Jose, California, according to media reports. "They do so for several reasons. One, of course, our ecosystem is rich. Our tools work great." See Also: 7 Million Gamers Already Trust Gameflip With Their Digital Assets -- Now You Can Own a Stake in the Platform Massive Texas Data Center Plans Signal Infrastructure Ambitions The planned investment aligns with Poolside's Oct. 15 announcement of a partnership with CoreWeave (NASDAQ:CRWV) to build one of the largest data centers in the U.S., part of an initiative called "Project Horizon." The facility, located in West Texas, is expected to deliver 2 gigawatts of capacity, which Bloomberg said is enough to power about 1.5 million homes. The project forms part of Poolside's strategy to combine energy resources, compute capacity, and research operations under one structure. The company said it is working with local leaders in Pecos County to ensure Project Horizon delivers long-term regional benefits through job creation, infrastructure investment, and workforce training. Read Next: These five entrepreneurs are worth $223 billion - they all believe in one platform that offers a 7-9% target yield with monthly dividends Image: Midjourney CRWVCoreWeave Inc$105.17-8.09%OverviewNVDANVIDIA Corp$189.37-2.99%Market News and Data brought to you by Benzinga APIs

Nvidia to invest up to $1 billion in AI startup Poolside, Bloomberg News reports

(Reuters) -Nvidia will invest up to $1 billion in AI company Poolside, in a deal that would quadruple the startup's valuation, Bloomberg News reported on Thursday, citing people familiar with the matter. Poolside is in discussions to raise $2 billion at a pre-money $12 billion valuation, Bloomberg reported, adding that Nvidia's investment in the round would start at $500 million, with the potential to reach $1 billion if the startup meets its fundraising targets. Poolside, which offers AI-powered coding assistants, has already secured more than $1 billion in commitments for the latest funding round, including roughly $700 million from existing investors, according to the report. Poolside and Nvidia did not immediately respond to Reuters' requests for comment. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Maju Samuel)