AI chip giant Nvidia has struck a non-exclusive licensing deal with AI model startup Poolside for 6 billion dollars, plus a 1 billion dollar investment at a 12 billion dollar pre-money valuation, according to a letter to investors published by Newcomer on August 21.
As part of the deal, Poolside existing investors will be paid out 76.20 dollars per share by the end of 2027. The 6 billion dollar payment represents one of the largest licensing deals in the AI industry to date.
Poolside focuses on AI models for code generation. The deal comes as Nvidia has committed over 15 billion dollars in investments to AI companies so far in 2026. Nvidia recently partnered with six major Wall Street firms to establish 500 billion dollars in financing platforms for AI infrastructure.
The Poolside deal is notable for its structure: rather than a traditional acquisition, Nvidia is licensing Poolside technology while keeping the startup independent, mirroring a broader trend in AI where large companies invest in startups rather than acquiring them outright.
