Quick overview

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Nvidia intends to invest up to $1 billion in Poolside, an AI startup. This investment would quadruple the startup’s valuation. At a $12 billion valuation, excluding money raised, Poolside is in talks to raise $2 billion.

 

Nvidia’s investment in the round, which has not been previously reported, would begin at $500 million and could reach $1 billion if the startup meets its fundraising targets.

Poolside has already raised over $1 billion for its most recent funding round, including approximately $700 million from existing investors. Poolside’s new valuation signifies a significant increase from the $3 billion estimated by investors during a funding round last year. This deal reflects the investors’ substantial bet on an AI startup that only launched its first product a year ago. With offices in the US and Paris, Poolside specializes in coding automation and provides a product for defense and government use.

However, its goals have been described as developing artificial general intelligence with broad applications. The term artificial general intelligence, or AGI, refers to a more advanced and speculative form of AI that is so sophisticated it can outperform humans.
Nvidia’s participation in the funding round demonstrates how the world’s largest company by market capitalization is supporting an expanding network of AI startups that could eventually become important clients. One person states that Poolside plans to use some of the extra money to purchase Nvidia’s GB300 chips. Nvidia had previously invested in Poolside.

The agreement also supports Poolside’s ambitious infrastructure goals. The company announced a partnership with CoreWeave Inc. earlier in the month to build one of the largest data centers in the US as part of Project Horizon. The facility, which will be constructed in West Texas, is expected to have a capacity of two gigawatts, sufficient to power approximately 1.5 million homes.