Nvidia Eyes Substantial Investment in Poolside, Elevating Valuation Prospects
Nvidia is poised to invest up to $1 billion in the artificial intelligence startup Poolside, a maneuver that may catapult the company’s valuation to an impressive $12 billion. Currently engaged in a $2 billion funding endeavor, Poolside has successfully secured over half of this amount, as reported by Bloomberg sources with insider knowledge.
Present investors have pledged around $700 million, with the hedge fund Magnetar also exploring opportunities to participate in this financial round.
Should discussions culminate in success, Nvidia’s initial stake may commence at $500 million, with the potential to escalate to $1 billion. A portion of this fresh capital will be earmarked for acquiring Nvidia’s GB300 chips, which are essential for underpinning the startup’s technological framework.
Strategic Collaborations and Infrastructure Development
Poolside has partnered with CoreWeave, a prominent cloud service provider, to initiate an expansive data center project nicknamed Horizon, situated in West Texas. This ambitious facility is anticipated to draw approximately 2 gigawatts of power, paralleling the electricity consumption of about 1.5 million households. This venture highlights Poolside’s aspirations to substantially enhance its AI capabilities.
A Series of Investments
This marks not Nvidia’s first foray into investment in Poolside. Previous reports from TechCrunch indicated that the startup successfully raised $500 million during a Series B round in October 2024, spearheaded by Bain Capital Ventures and featuring contributions from Nvidia and eBay.
This funding round culminated in a total investment of roughly $626 million, positioning the company’s valuation at around $3 billion.
Founders and Vision
Established in 2023 by Jason Warner, the former CTO of GitHub, alongside entrepreneur Eiso Kant, Poolside maintains offices in the United States and Paris. The organization is dedicated to AI-driven code automation, with a pronounced emphasis on applications tailored for government and defense sectors. Its overarching ambition is to pioneer artificial general intelligence (AGI) that transcends human cognitive capacities.
Foundational Expertise
Warner was instrumental in the creation of GitHub’s AI-assisted coding tool, Copilot, while Kant has a history of founding various engineering data enterprises. The duo shares nearly six years of collaborative experience, culminating in the development of Poolside’s AI-centric programming suite.
Nvidia’s Expanding AI Portfolio
According to PitchBook, Nvidia had invested in 59 AI startups by mid-October 2025, surpassing its total investment tally from 2024. Notable entries in its growing portfolio include the AI search engine Perplexity AI and the humanoid robotics company Figure AI, showcasing Nvidia’s expanding influence in the realm of artificial intelligence technologies.
Strategic Alignment in AI Investment
Nvidia’s augmented commitment to Poolside is consistent with its strategy to fortify its foothold in the AI domain. By leveraging its hardware and expertise, Nvidia aims to bolster startups that are pushing the boundaries of cutting-edge AI innovations.
The company’s engagement in Poolside’s growth and infrastructure development contributes to a wider pattern of significant investments designed to expedite AI research and deployment across diverse industries.
Source link: Digitimes.com.
