Nvidia plans up to $1 billion investment in AI startup Poolside

The deal is expected to boost Poolside’s valuation fourfold amid rising demand for AI coding tools

Nvidia is reportedly preparing to invest up to $1 billion in AI startup Poolside, a move that could raise the company’s valuation to nearly $12 billion, according to a Bloomberg report citing people familiar with the discussions.

Major boost for AI coding platform

Poolside, known for developing AI-driven coding assistants, is currently in talks to raise about $2 billion in a new funding round. Nvidia’s participation will begin with a $500 million investment, which could double depending on Poolside’s fundraising progress.

The company has already secured over $1 billion in commitments, including about $700 million from existing investors, highlighting strong market confidence in its technology and business model.

Strengthening Nvidia’s AI ecosystem

For Nvidia, the investment aligns with its strategy to expand across the AI software and developer tools ecosystem, complementing its dominance in AI chips and data center infrastructure. The partnership is expected to deepen Nvidia’s involvement in next-generation AI applications that support automation and software development.

If finalized, the deal would mark one of Nvidia’s largest private investments in the fast-growing AI startup landscape this year.