Nvidia is paying $6 billion for software that builds AI models from the startup Poolside, and it wants to bring on 109 employees. That's according to an investor letter first reported by Newcomer.
The employees worked on the Laguna model and are getting job offers from Nvidia. Nvidia is licensing the "Model Factory," the system Poolside used to build its model. Nvidia builds its own open AI models in the Nemotron line, which puts it in competition with some of its own customers. On top of that, Nvidia is investing $1 billion at a $12 billion pre-money valuation. The three founders are staying on.
The deal is "not an acquisition and it is not an acquihire," the letter says. An acquihire is a purchase driven mainly by the talent. These deals have become a go-to move for big tech companies looking to lock in technology, know-how, and staff without buying a company outright and triggering the regulatory reviews that can follow. Nvidia struck similar deals with Groq ($20 billion) and Enfabrica ($900 million).
Poolside plans to distribute the $6 billion to its investors by the end of next year.
AI News Without the Hype – Curated by Humans
Subscribe to THE DECODER for ad-free reading, a weekly AI newsletter, our exclusive "AI Radar" frontier report six times a year, full archive access, and access to our comment section.
Subscribe now