Nvidia Corp. has reportedly committed to investing as much as $1 billion in Poolside, an artificial intelligence enterprise based in San Francisco, according to sources acquainted with the situation. If successful, this strategic financial infusion is projected to quadruple the startup’s current valuation.
This revelation arrives amidst Poolside’s ambitious initiative to secure around $2 billion while calculating its worth at $12 billion—a figure that notably excludes earlier funding sources.
While the exact figure of Nvidia’s contribution to this financing round remains undisclosed, an unnamed insider indicated that the tech titan intends to initiate its investment at $500 million, with the potential to escalate to $1 billion, contingent on Poolside meeting its fundraising milestones.
This announcement follows a substantial surge in Nvidia’s stock price, which reached a record closing value following the company’s unveiling of innovative products, new partnerships, and investment opportunities at its GTC event, elevating its market capitalization to $5 trillion.
Nvidia earlier this week unveiled plans to collaborate with the US Department of Energy in the construction of seven supercomputers, including a formidable unit equipped with 10,000 of its Blackwell GPUs.
The semiconductor powerhouse is also poised to enhance national security capabilities through newly forged alliances with Palantir, Oracle, and telecommunications giants such as Cisco and T-Mobile, anticipating the next wave of 6G infrastructure development.
Major Tech Corporations Extend Support to Flourishing AI Startups
In terms of its funding activities, sources indicate that Poolside has already amassed over $1 billion in commitments, with approximately $700 million sourced from its existing investors. Magnetar, a hedge fund management firm, is also reportedly negotiating to contribute to this funding round, according to The Information.
Following this unveiling, Poolside’s valuation has skyrocketed from the $3 billion expected by investors during a previous round of funding last year. This development underscores an intensifying confidence among investors in an AI startup that launched its inaugural product merely a year ago.
Founded in 2023, Poolside specializes in coding automation aimed at government and defense applications, with aspirations to develop a versatile artificial general intelligence (AGI). The company boasts offices in both the United States and Paris, France, striving to maintain its competitive edge within the industry.
Meanwhile, Nvidia’s participation in this funding initiative reflects a growing trend among top-tier corporations looking to underpin a burgeoning network of AI startups, believing they might evolve into pivotal clients.
Sources indicate that Poolside plans to allocate part of the newly acquired funds for the procurement of Nvidia’s GB300 chips, marking a continued partnership, as Nvidia has previously invested in this AI-centric startup.
Moreover, this arrangement complements Poolside’s expansive infrastructure ambitions. Earlier this month, the company announced a strategic alliance with CoreWeave Inc. to develop one of the largest data centers in the U.S. as part of Project Horizon, which is slated to be constructed in West Texas with a projected capacity of 2 gigawatts—enough to power approximately 1.5 million households.
Nvidia Seeks to Maintain a Competitive Edge through Strategic Investments in AI
Under the stewardship of Jason Warner, a former executive at GitHub, Poolside stands among several rapidly expanding AI firms capturing Nvidia’s interest.
Reports reveal that as of mid-October, Nvidia has made investments in 59 AI startups, surpassing its total from the previous year, according to data from PitchBook.
Additionally, the Silicon Valley-based AI chip manufacturer has invested in ventures such as Perplexity AI, an AI-driven search engine, and Figure AI, a company concentrating on humanoid robotics.
During the GTC conference, CEO Jensen Huang expressed gratification in recognizing that numerous AI startups are founded on Nvidia technologies. “Our ecosystem is robust, and our tools deliver exceptional performance,” Huang asserted.
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