- NVIDIA Corp. has struck a multi-billion-dollar deal with AI startup Poolside to license technology and recruit talent.
- Nvidia is paying $6 billion to license AI models from Poolside and extending employment offers to more than 100 workers.
- The semiconductor titan injected an extra $1 billion into Poolside, valuing the enterprise at $12 billion before the new funding.
Semiconductor giant Nvidia Corp. has reportedly reached an agreement to license Artificial Intelligence software from startup Poolside for $6 billion and plans to extend employment offers to more than 100 of its staff.
As part of the transaction, Nvidia is also making a separate $1 billion investment in the startup, according to a report by Bloomberg. The fresh funding assigns Poolside a pre-money valuation of $12 billion, and the company will continue operating as an independent entity.
Tech newsletter Newcomer originally reported the deal. NVDA shares dropped 0.9% on Friday and ended the week about 5% lower.
The agreement highlights an aggressive push by Santa Clara, California-based Nvidia to inject capital into the artificial intelligence sector. The chipmaker aims to drive wider commercial adoption of the technology to secure sustained market demand for its hardware.
Nvidia has increasingly targeted open-source AI frameworks that let developers freely adapt and build on existing models. By promoting accessible software, Nvidia hopes to prevent Ai technology from becoming concentrated among a few select tech conglomerates.
Poolside, which maintains a presence in both the United States and Paris, specializes in AI systems that automate programming tasks. The startup focuses particularly on defense and public sector software applications.
The arrangement resembles Nvidia’s earlier move to acquire licensing rights from semiconductor startup Groq for roughly $20 billion. Such licensing and talent-acquisition deal structures have drawn criticism from lawmakers who view them as mechanisms to sidestep antitrust reviews.
NVDA stock has gained 14.5% year-to-date.
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