Nvidia to Invest $1-B in AI Startup Poolside

Nvidia Corp. plans to invest as much as $1 billion in artificial intelligence startup Poolside, according to people familiar with the matter—part of a deal that would quadruple the valuation of the AI company, Kate Clark and Yazhou Sun reported for Bloomberg News.

The Nvidia-Poolside deal represents a significant bet by investors on an AI company that only launched its first product a year ago. (Image: NVIDIA AI X) 

Poolside is in discussions to raise $2 billion at a $12 billion valuation, excluding the funds being raised.

Nvidia’s investment in the round, which has not been previously reported, would start at $500 million, with the potential to reach $1 billion if the startup meets its fundraising targets, said one of the people, who requested anonymity because the details are private.

Poolside has already secured more than $1 billion in commitments for the latest funding round, including roughly $700 million from existing investors, one person said.

Magnetar, a money manager known for hedge fund investing, is also in talks to participate in the round, according to another source. Poolside’s new valuation marks a sharp jump from the $3 billion valuation investors assigned it during a funding round last year.

The deal represents a significant bet by investors on an AI company that only launched its first product a year ago.

Poolside, which has offices in the United States and Paris, develops products focused on coding automation, targeting government and defense applications.