Nvidia plans to invest up to $1 billion in the startup Poolside. The investment is part of the AI-focused startup's ongoing funding round. According to a Bloomberg report, the investment could start at $500 million, or about CZK 11.6 billion, and increase to the full $1 billion if Poolside meets its fundraising targets.
What Poolside Does
Poolside AI is a company founded in 2023 that specializes in developing advanced AI foundation models primarily intended for software development. Its main goal is to transform the way coding and related enterprise work are carried out through generative AI models, APIs, and coding assistants that automate, improve, and secure the entire software engineering process. Poolside focuses on enterprise environments, where its solutions operate within the customer's secure boundaries—either on-premises or in a private cloud—to ensure that data remains under the company's control. This is a key differentiator from other tools. It uses a technique called Reinforcement Learning via Code Execution Feedback (RLCEF), which trains AI based on real-world code execution results, such as successful testing or compilation, increasing its reliability and ability to solve complex tasks. The company, led by CEO Jason Warner, the former CTO of GitHub, is headquartered in Paris and aims to achieve artificial general intelligence (AGI) through mastery of software engineering, while working with partners such as AWS on secure and customizable tools for enterprises.
Poolside is now shifting its focus to training foundation models. The startup is seeking to raise around $2 billion, approximately CZK 46.4 billion, at a valuation of $12 billion, equivalent to about CZK 278.4 billion, excluding this investment. Hedge fund Magnetar, a major backer of CoreWeave, is in talks to participate in the round. Earlier this month, Poolside announced plans to build a data center in West Texas, where CoreWeave will be the anchor tenant in the project's first phase.
Nvidia's Other Investment Moves
This investment follows a trend of Nvidia investing in companies that are customers of its AI hardware. This week alone, Nvidia announced a $1 billion investment, or about CZK 23.2 billion, in Finnish telecommunications company Nokia, which supplies network equipment and software. As part of the agreement, Nokia will adopt Nvidia's new telecommunications hardware designed specifically for artificial intelligence.
Poolside is thus strengthening its position in artificial intelligence thanks to support from Nvidia, which sees further growth potential in the startup.
Source: bloomberg.com
