Nvidia has agreed to license technology from Poolside, an AI startup focused on building coding models, in a deal valued at roughly $6 billion, while also taking a $1 billion equity stake in the company rather than pursuing an outright acquisition, according to people familiar with the arrangement.
The structure lets Nvidia deepen ties with a promising AI software vendor without folding it into its own operations, a template the company has increasingly favored as it looks to secure access to cutting-edge models while staying focused on chip design and systems. Nvidia representatives have also held talks with South Korean AI chip startup Rebellions about a possible collaboration or investment, suggesting the company is casting a wide net for partnerships across the AI stack.
The Poolside deal adds to a growing list of arrangements in which Nvidia extends capital or credit to companies that, directly or indirectly, spend heavily on its own hardware — a dynamic that has drawn scrutiny from analysts who worry about circular financing propping up AI valuations industry-wide.
Nvidia has defended the practice publicly, arguing the underlying demand for its chips is real and that its investments simply help promising customers scale faster.
