Nvidia is reportedly planning one of its biggest startup bets yet, with a potential investment of up to $1 billion in Poolside, an AI company developing generative models to assist software engineers. According to Bloomberg, the semiconductor giant is set to commit at least $500 million, which could rise to $1 billion if Poolside successfully completes its $2 billion funding round. The deal would value Poolside at around $12 billion, marking another major milestone for the fast-growing AI startup and further strengthening Nvidia’s position as one of the most influential investors in artificial intelligence.
This investment builds on Nvidia’s earlier backing of Poolside in its $500 million Series B round in October 2024. Since then, Poolside has gained momentum as a leader in AI-driven software development, using machine learning to make coding faster, smarter, and more intuitive. Its technology allows developers to write and test software more efficiently, blending automation with human creativity, a vision that aligns closely with Nvidia’s broader mission to accelerate every layer of the AI ecosystem.
For Nvidia, the deal represents more than a financial move. It’s part of a larger strategy to expand its reach beyond hardware and into the software and application layers of AI. The company has been steadily investing in startups that drive demand for its GPUs and infrastructure. In recent months, Nvidia has announced a $500 million investment in the UK-based self-driving company Wayve and took a $5 billion stake in Intel to collaborate on future chip technologies. Each of these deals reinforces Nvidia’s growing influence across industries where AI plays a transformative role.
The potential Poolside investment reflects how Nvidia is building an ecosystem where hardware, software, and AI models work together seamlessly. By funding startups that integrate AI into real-world workflows, Nvidia is ensuring long-term relevance for its chips while fueling the development of applications that rely on them. This approach strengthens Nvidia’s dominance not just as a chip supplier but as an innovation engine powering the global AI economy.
If completed, the deal would push Poolside into the ranks of the world’s highest-valued AI startups, highlighting investor confidence in its potential to redefine software creation. For Nvidia, it would underscore its commitment to shaping the future of AI, where advanced chips and intelligent software evolve hand in hand to drive the next era of technology growth.
