Nvidia eyes $1B investment in AI coding startup Poolside

Nvidia is reportedly preparing to invest between $500 million and $1 billion in Poolside, an AI software development platform that builds AI models for coding applications. This substantial investment would be part of Poolside’s $2 billion funding round at a $12 billion valuation, demonstrating Nvidia’s continued aggressive expansion into AI software companies beyond its core semiconductor business.

What you should know: Nvidia’s investment in Poolside could reach $1 billion if the company successfully completes its broader $2 billion funding round, according to Bloomberg reporting.

• The investment represents a significant follow-up to Nvidia’s previous backing of Poolside during its $500 million Series B round in October 2024.
• Poolside specializes in building AI models specifically designed for software development applications, positioning it in the rapidly growing AI-assisted coding market.

The big picture: Nvidia has been systematically diversifying its investment portfolio across various AI sectors as it leverages its dominant position in AI hardware.

• The company recently explored a $500 million investment in Wayve, a U.K.-based autonomous driving company, in October.
• Last month, Nvidia took a $5 billion stake in Intel, a major semiconductor manufacturer, with plans for future chip collaboration, signaling broader strategic partnerships beyond pure investment plays.

Why this matters: Nvidia’s substantial investment in Poolside reflects the semiconductor giant’s strategy to capture value across the entire AI stack, not just hardware sales.

• By backing companies that develop AI software tools, Nvidia positions itself to benefit from the growing demand for AI-powered development platforms while potentially driving more demand for its underlying GPU infrastructure.
• The $12 billion valuation for Poolside underscores the massive market opportunity investors see in AI-assisted software development tools.