- Nvidia agreed to pay $6 billion to license artificial intelligence models from Poolside and will extend job offers to more than 100 employees, according to people familiar with the situation.
- Nvidia will also invest $1 billion in Poolside at a $12 billion pre-money valuation, not including those funds, said the people, who asked not to be identified because the discussions were private.
- Poolside will keep operating independently, and its three co-founders will remain with the company.
- Poolside, an AI startup, developed open-source AI models and needed more Nvidia hardware to continue competing.
Nvidia Corp. has struck a significant deal with Poolside, agreeing to pay $6 billion to license its AI model-development software. The agreement includes extending job offers to 109 employees involved in creating Poolside's AI open-source model and an additional $1 billion investment at a $12 billion valuation.1234
According to sources familiar with the negotiations, the deal is not an acquisition but rather a licensing agreement, allowing Poolside to maintain its independence. Poolside's three co-founders will remain with the company, ensuring continuity in leadership and innovation.
The report highlights Nvidia's growing role as a major developer of open-source models, a sector that has seen increasing competition. Poolside indicated in its communications to investors that it would require more access to Nvidia hardware to remain competitive in the open-source model development landscape.
This strategic partnership underscores Nvidia's commitment to enhancing its AI capabilities while supporting the growth of innovative startups in the tech industry.
“The deal is structured as a license and investment, not an acquisition or acqui-hire, with Poolside's three co-founders staying and the startup operating independently. Poolside said it needed more Nvidia hardware than possible to continue competing in open-source model development.”
PYMNTS.com
