Nvidia has agreed to pay $6 billion to license AI model-building software from startup Poolside, in a deal that blends licensing, investment, and mass hiring rather than a conventional acquisition.
The arrangement, first reported by Newcomer and confirmed by multiple outlets including The Information and Dealroom, also includes a $1 billion Nvidia investment in Poolside at a $12 billion pre-money valuation. As part of the package, 109 Poolside employees will receive job offers from Nvidia, though the three co-founders will remain at the company.
How the Deal Works
The core of the transaction is a non-exclusive license for Poolside’s Model Factory, the proprietary system the startup used to build its AI models. Poolside began as a developer of a coding AI agent and later moved into data center infrastructure before releasing open-source models on Nvidia server chips.
According to Poolside’s investor letter, the $6 billion licensing fee is expected to be distributed to investors by the end of 2027. The company emphasized that the arrangement is not an acquisition and not an acquihire, with Poolside retaining the ability to license the same software to other parties.
A New Blueprint for AI Deals
The structure reflects a growing trend in how cash-rich technology companies acquire scarce AI intellectual property and talent. Rather than purchasing startups outright, large firms are licensing technology, absorbing large portions of engineering teams, and leaving the original corporate entity to operate independently.
This is the third deal Nvidia has structured this way, suggesting the chipmaker is building a playbook for assembling AI capabilities through partial acquisitions that avoid the regulatory scrutiny of full mergers.
For Nvidia, the deal deepens its involvement beyond chips and infrastructure into the software and model-building layer. For Poolside’s remaining management, it provides significant liquidity and fresh capital without a traditional sale. Poolside Infrastructure Company, a separate spinout launched in January, is building a 1.2 gigawatt data center in Texas and appointed a new chief financial officer this week.
Implications for the AI Race
The deal comes as Nvidia increasingly uses its enormous balance sheet to secure AI technology and talent across the stack. Nvidia has already committed separate investments in OpenAI and other model-building firms, and the Poolside arrangement may signal how the company plans to acquire future capabilities without formal acquisitions.
The non-exclusive nature of the license is particularly notable. It allows Poolside to continue licensing its Model Factory technology to others, meaning Nvidia is paying a premium for early access and talent rather than exclusive control. This could become a template for future AI deals where startups hold valuable infrastructure but lack the compute resources to compete independently.
Sources: Newcomer; The Information; Dealroom; TechStartups; The Next Web
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