Nvidia, the global leader in semiconductor and AI computing, is reportedly preparing to invest between $500 million and $1 billion in Poolside.
Poolside is an AI startup focused on software development tools. The potential investment, first reported by Bloomberg, would form part of Poolside’s ongoing $2 billion funding round.
This has brought the company’s valuation to $12 billion.
Also read: Nvidia Crosses $5 Trillion Valuation
AI Software
If finalized, Nvidia’s participation would mark one of its largest investments in an AI software company to date.
The deal is a major marker of Nvidia’s growing ambition to expand beyond hardware and strengthen its position.
Poolside develops advanced AI models designed to assist in software creation, debugging, and optimization.
The company aims to make programming faster, more efficient, and more accessible for developers and enterprises.
According to Bloomberg, Nvidia’s initial investment could start at $500 million, potentially doubling if the rest of the funding round is completed successfully.
This would not be Nvidia’s first involvement with Poolside. The chipmaker previously took part in Poolside’s $500 million Series B round in October 2024.
Nvidia’s AI Strategy
Nvidia’s investment strategy is to integrate its hardware with powerful AI software platforms that drive demand for its GPUs.
Backing Poolside positions it closer to the software layer where AI innovation meets developer productivity. This strategy also mirrors its recent activity in other sectors.
In October, Nvidia considered a $500 million investment in U.K.-based self-driving company Wayve.
And earlier this year, the company also acquired a $5 billion stake in Intel; a potential collaboration on future chip technologies.
Through these moves, Nvidia demonstrates a deliberate effort to secure influence across multiple areas of AI. That’s hardware, software, and now, the developer tools that connect both.
Why Poolside
Poolside builds AI systems capable of understanding and generating code. This is a capability increasingly sought after by developers and large enterprises.
As AI-assisted coding tools become mainstream, the demand for powerful hardware to run them continues to grow.
Poolside’s technology complements Nvidia’s hardware, creating a natural synergy between the two companies.
