Nvidia says it will pay $6 billion for Poolside's Model Factory and 109 employees
This digest was compiled by AI from multiple sources — links to the originals are below.
Nvidia said it will pay $6 billion for software that builds AI models from startup Poolside and bring on 109 employees, according to an investor letter first reported by Newcomer. Poolside plans to distribute the $6 billion to its investors by the end of next year. The three founders are staying on.
Key Facts
- Nvidia is separately investing $1 billion in Poolside at a $12 billion pre-money valuation.
- Poolside's three founders are staying on after the deal.
- Poolside plans to distribute the $6 billion to its investors by the end of next year.
- Nvidia previously struck similar deals with Groq for $20 billion and Enfabrica for $900 million.
- The deal is "not an acquisition and it is not an acquihire," the investor letter said.
Deal Structure
Nvidia is paying $6 billion for the Model Factory software that Poolside used to build its AI model. The company is licensing the system rather than acquiring Poolside outright. Nvidia is also investing $1 billion in Poolside at a $12 billion pre-money valuation. Poolside plans to distribute the $6 billion to its investors by the end of next year.
Talent and Founders
Nvidia has extended job offers to all 109 Poolside employees who worked on the Laguna model. The three Poolside founders are staying on after the deal. The investor letter states the arrangement is "not an acquisition and it is not an acquihire." Nvidia is bringing on the employees without buying the startup outright, avoiding a full acquisition.
Nvidia's Recent Deal Pattern
Nvidia previously struck similar arrangements with Groq for $20 billion and Enfabrica for $900 million. These deals allow big tech companies to secure technology, know-how, and staff without triggering regulatory reviews that can follow full acquisitions. Nvidia's own open Nemotron models put it in competition with some of its customers.
3 sources
Nvidia says it will pay $6 billion for Poolside's Model Factory and 109 employees
