TLDR
- Nvidia is committing up to $1 billion to Poolside, a French AI startup focused on automated coding solutions
- The investment could value Poolside at $12 billion as part of a larger $2 billion fundraising effort
- Nvidia previously invested in Poolside’s $500 million Series B round just one year ago in October 2024
- NVDA shares trade with a Strong Buy rating and analysts see 14.81% upside despite recent 2% decline
- The funding will help Poolside purchase Nvidia’s GB300 chips and expand its U.S. data center infrastructure
Nvidia is preparing to invest as much as $1 billion in Poolside, marking its second major backing of the AI coding startup. The move comes less than 12 months after the chip maker first supported the company.
Reports from Bloomberg indicate the investment could value Poolside at $12 billion. That represents a four-fold increase in the startup’s worth.
Poolside is currently raising $2 billion in total capital. Nvidia’s portion will begin around $500 million and could climb to $1 billion based on fundraising success.
The startup has already gathered more than $1 billion in investor commitments. Returning backers are providing approximately $700 million of that amount.
Neither Nvidia nor Poolside has publicly confirmed the deal. Official statements have not been released.
Strategic Investment Approach
Poolside creates AI technology that handles coding tasks automatically. Developers use the platform to write and improve software more efficiently.
Nvidia first invested in Poolside during its $500 million Series B round last October. This follow-up investment shows strong belief in the startup’s potential.
The arrangement benefits both companies. Industry sources say Poolside intends to spend part of its new capital on Nvidia’s GB300 chips.
This investment model is becoming standard for Nvidia. The company funds AI startups that subsequently become hardware customers.
Poolside announced a partnership with CoreWeave earlier in October to construct a major U.S. data center. The fresh funding will fuel this ambitious project.
Market Position and Future Growth
Nvidia continues spreading investments throughout the AI sector. The company is establishing a web of AI businesses reliant on its chip technology.
This strategy locks in future revenue streams. It also reinforces Nvidia’s commanding position in AI hardware.
The investment philosophy matches Nvidia’s market forecasts. Company executives predict global data center capital spending will surge from $600 billion in 2026 to between $3 trillion and $4 trillion by 2030.
Supporting startups like Poolside today helps Nvidia capture tomorrow’s explosive growth.
Current Stock Analysis
Nvidia touched a $5 trillion market valuation Wednesday during presentations at its GTC Conference. The company unveiled multiple partnership deals at the Washington, D.C. event.
Stock price fell more than 2% Thursday following a Trump-Xi meeting that offered no progress on China chip exports. Year-to-date returns still show NVDA up over 50%.
Analysts maintain overwhelmingly positive views on the stock. The consensus rating is Strong Buy with 36 Buy ratings, one Hold, and one Sell.
Target price averages $232.94 across analyst coverage. This suggests potential gains of 14.81% from present levels.
The company awaits word on its China export license application. U.S. authorities revoked the original license earlier in 2025, though Nvidia has submitted a new request.
Poolside has attracted over $1 billion in funding commitments toward its $2 billion goal with a pre-money valuation set at $12 billion.
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