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Chronicles

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Sources: Poolside struck a non-exclusive $6B Nvidia licensing deal; Nvidia invested $1B at a $12B pre-money valuation and offered jobs to 109 Poolside employees

EXCLUSIVE TO NEWCOMER: Poolside AI, the artificial intelligence model-building startup, has struck a non-exclusive licensing deal …

Newcomer

Context & Ripple Effects

Poolside began as an AI software-development tools startup, then pursued substantially larger model-building ambitions. Nvidia’s earlier reported plan to invest in Poolside was followed by Poolside’s talks with Google and others to revive its Texas data-center project after a CoreWeave arrangement and Nvidia-led funding round reportedly collapsed.

The newly reported package replaces that financing uncertainty with a combined licensing, equity, and employment relationship. It also extends Nvidia’s recent pattern of large commitments to frontier-model companies, including its reported investment discussions with OpenAI and $5B commitment to SSI.

First-order effects

  • Poolside gains a reported $1B equity infusion and a non-exclusive $6B technology-licensing arrangement with Nvidia, while 109 employees receive Nvidia job offers.
  • Nvidia obtains a non-exclusive license and a direct capital-and-talent relationship with Poolside rather than acting only as an external infrastructure provider.

Second-order effects

  • Poolside’s prospective partners, including Google and other parties involved in the Texas-project discussions, now face a company with Nvidia financing and licensing support behind it.
  • The combination of licensing, investment, and staff recruitment gives Nvidia a more expansive template for engaging model builders than the earlier reported Poolside investment plan alone.

Third-order effects

  • If Nvidia repeats this structure across model companies, the boundary between chip supplier, capital provider, technology licensor, and employer will narrow around a small group of AI developers.
  • Nvidia’s reported Poolside, OpenAI, and SSI commitments point toward an integrated AI stack in which access to capital and technology is increasingly bundled with strategic infrastructure relationships.

The trend: AI infrastructure is being platformized as Nvidia pairs capital and technology agreements with deeper commercial and talent ties to model developers.

Discussion

  • @ericnewcomer Eric Newcomer on x
    Poolside AI, the artificial intelligence model-building startup, has struck a non-exclusive licensing deal with Nvidia for $6 billion, plus a $1 billion investment in Poolside at a $12 billion pre-money valuation, according to a letter to investors obtained by Newcomer. As part
  • @alexrkonrad Alex Konrad on x
    An unusual AI deal scooped by @NewcomerMedia just now 👇 ▪️Poolside is raising $1B from Nvidia and signed a $6B licensing deal ▪️109 employees getting job offers at Nvidia ▪️VCs to get $$ distribution ▪️Founders staying behind and insisting it's not an acquisition or acquihire
  • @matthewberman Matthew Berman on x
    Non-exclusive licensing deals are the new acquisition.
  • @kevinakwok Kevin Kwok on x
    We're going to continue to see this. And they are getting more and more advanced https://kwokchain.com/...
  • @xeophon Florian Brand on x
    1) what
  • @12exyz Rex on x
    an emerging strategy for neolabs is to pivot to open source then raise billions from or get acquired by nvidia (first @reflection_ai , then @essential_ai , now @poolsideai)
  • @ericnewcomer Eric Newcomer on x
    BREAKING: Poolside Strikes $6 Billion Licensing Deal with Nvidia & Raises $1 Billion for Remaining Company at $12 Billion Valuation https://www.newcomer.co/...
  • @conorbronsdon Conor Bronsdon on x
    I can't remember a non-exclusive licensing deal + not-not-acquihire where the Founders have stuck around instead of joining the acquirer? Very interested to hear more from Jason + Eiso on how this all works out - but NVIDIA's appetite for open source models + talent is clear
  • @edzitron Ed Zitron on x
    It's not an acquisition or an acquihire NVIDIA is just investing in a company that failed to raise a round, licensing its tech, giving it $6 billion and hiring 109 of its staff
  • @vishctx Vish on x
    “This is not an acquisition and it is not an acquire” It is a secret third thing! ;)
  • @himanshustwts Himanshu on x
    BREAKING: NVIDIA just did Groq-like (licensing + talent) acquisition of Poolside but the founders remain to continue running the Poolside independently. - Non-exclusive $6 billion licensing deal with Nvidia for technology/models of Poolside. - Also, Nvidia is investing $1
  • @teortaxestex @teortaxestex on x
    I'm tired of built-for-exit startups. It feels like Americans don't actually believe they can create new viable companies. then again, Poolside has better momentum than Nvidia's Nemotron. Hopefully it'll accelerate them.
  • @natolambert Nathan Lambert on x
    The first LLM lab to majorly downsize on employees ahead of their next training run
  • @peterj_walker Peter Walker on x
    Hooray for US open weight AI
  • @guangyurobert Robert Yang on x
    startup founder to big tech corp dev in 2027 hey, you think you can cursor us? oh, you want to windsurf us how about a poolside instead?
  • @skeptrune Nick Khami on x
    tldr: employees are getting payouts totaling $6B to join nvidia while founders stay behind to rebuild the org from scratch with a fresh $1B investment at $12B val basically a reverse windsurf/groq where the founders get left behind instead of the employees
  • @austen Austen Allred on x
    I know this dates me, but back in my day to acquire companies you would acquire the company
  • @trace_cohen Trace Cohen on x
    @skeptrune Makes sense - the founders are already rich, Jason Warner CTO of GitHub etc doesn't want to work for anyone else so he let the employees cash out and get a good job. While he keeps building with more money but doesn't really have a boss to report to so win win
  • @roland_graser Roland Graser on x
    > weirdest acquihire ever just dropped > 100 employees join nvidia but not the founders > poolside gets 7bn, effectively paying out investors, employees and founders > so the founders basically exit, but don't lose control, don't join NVIDIA, and keep building > ww...win?
  • @dejavucoder Sankalp on x
    when your poolside fan friend sees its getting acquired
  • @tejasybhakta Tejas Bhakta on x
    acquisitions in 2020: Nvidia buys Mellanox for $6.9b acquisitions in 2026: Nvidia strikes a non-exclusive exclusive deal for 109 employees in exchange for $1b in funding, and giving the founders 3 unborn sons the right to a 20m seed round each
  • @eliebakouch Elie on x
    wow this is kind of a shock.  from what i understand nvidia bought the “model factory” part of poolside and a lot of employees (researchers?)  got offers from nvidia.  founders staying at poolside is unusual, wondering if they will just become a neocloud/compute provider since i …
  • @_iainmartin Iain Martin on x
    “This is not an acquisition and it is not an acquihire,” the founders wrote in the note obtained by Newcomer. https://www.newcomer.co/... err
  • @hydroxide.dev Nick Fisher on bluesky
    I don't really know what's going with this weird deal structure, but I'm long on Poolside.  I hear mixed reports about Laguna but personally, my experience has been positive (for a non-frontier model).  Given enough resources, I feel like they'll be able to deliver something seri…