Nvidia plans up to $1b investment in AI startup Poolside: sources
- ByStartupStory | October 31, 2025
Nvidia Plans to Invest Up to $1 Billion in AI Startup Poolside
According to multiple sources, Nvidia, the leading semiconductor and AI hardware company, is preparing to invest as much as $1 billion in the AI startup Poolside. This strategic move is part of a broader effort by Nvidia to deepen its involvement in the AI software ecosystem, particularly in AI-driven code development platforms.
Poolside specializes in building AI models that automate and accelerate software development processes, which is increasingly vital as enterprises seek to integrate AI into their development workflows. The company is currently in negotiations to raise approximately $2 billion at a $12 billion pre-money valuation. Nvidia’s investment would start at $500 million, with the potential to reach $1 billion depending on the company’s fundraising success.
This funding round is expected to significantly increase Poolside’s valuation, potentially quadrupling it, and underscores Nvidia’s aggressive strategy to embed its high-performance GPUs and AI technology into the next generation of AI development tools. Nvidia previously invested $500 million in Poolside during its Series B round in 2024, indicating strong ongoing confidence in the startup’s growth trajectory.
Poolside’s rapid rise has attracted over $1 billion in commitments, including roughly $700 million from existing investors. The company creates AI models for software engineers to streamline coding, debugging, and application deployment, making it a key infrastructure player for AI-powered software development.
Industry experts see Nvidia’s potential investment as a move to secure a dominant position in AI software tools, ensuring the sustained demand for its GPU hardware and AI solutions. This deal would cement Nvidia’s role not just in hardware but also as a major investor shaping the future of AI technology and enterprise adoption.
In conclusion, the anticipated up to $1 billion investment by Nvidia in Poolside reflects the growing importance of AI software development tools, and signifies an ongoing trend of semiconductor giants investing heavily in AI startups to maintain technological leadership.
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