Nvidia (NVDA) Stock: Plans Up to $1 Billion Investment in AI Coding Startup Poolside

TLDR

• Nvidia is planning to invest up to $1 billion in Poolside, a French AI startup that develops coding automation tools
• The investment could quadruple Poolside’s valuation to around $12 billion as part of a $2 billion funding round
• Poolside previously received backing from Nvidia in its $500 million Series B round in October 2024
• Nvidia briefly hit a $5 trillion market cap on Wednesday before falling 2% on Thursday
• Analysts maintain a Strong Buy rating on NVDA stock with a price target implying 14.81% upside potential

Nvidia is reportedly planning to invest as much as $1 billion in Poolside, a French AI startup focused on coding automation. The move marks the second time Nvidia has backed the company in less than a year.

According to Bloomberg News, the investment could quadruple Poolside’s valuation. The startup is currently in talks to raise $2 billion at a pre-money valuation of $12 billion.

NVIDIA Corporation, NVDA

Nvidia’s contribution is expected to start at around $500 million. The investment could rise to $1 billion if Poolside reaches its full fundraising goals.

Poolside has already secured over $1 billion in commitments. About $700 million of that total comes from existing investors.

This isn’t Nvidia’s first rodeo with Poolside. The chip maker backed the startup in its $500 million Series B round in October 2024.

Both companies declined to comment on the recent reports. The deal has not been officially announced.

Poolside develops AI models that automate and enhance coding processes. The technology helps users write and optimize software more efficiently.

Creating Future Customers

The investment highlights Nvidia’s strategy of backing AI startups that could become key customers. One source told Bloomberg that Poolside plans to use part of the new funding to buy Nvidia’s GB300 chips.

Nvidia has become a major investor in AI startups across multiple sectors. The company is building a network of AI companies that rely on its chip technology.

This approach helps Nvidia secure future demand for its products. It also strengthens its position in the rapidly growing AI ecosystem.

Poolside recently announced plans to build one of the largest data centers in the U.S. The startup partnered with CoreWeave on the project earlier this month.

The data center expansion shows Poolside’s ambitious infrastructure plans. The new funding round would support this growth.

Recent Stock Performance

Nvidia briefly crossed the $5 trillion market valuation mark on Wednesday. The milestone came during announcements at its annual GTC Conference in Washington, D.C.

However, NVDA shares fell more than 2% on Thursday. The decline followed a Trump-Xi summit that failed to deliver updates on chip sales to China.

Year-to-date, Nvidia stock remains up over 50%. The gains reflect strong investor confidence in the company’s AI leadership.

Analysts maintain a Strong Buy consensus rating on NVDA stock. The rating is based on 36 Buys, one Hold, and one Sell assigned in the last three months.

The average share price target sits at $232.94. This implies a 14.81% upside potential from current levels.

Nvidia expects global data center capital expenditures to rise from $600 billion in 2026 to $3 trillion to $4 trillion by 2030. The company’s investments in startups like Poolside position it to capture this growth.

The chip maker’s export license to sell in China remains pending. The Trump administration revoked the license earlier this year, and Nvidia has reapplied with assurances it would be renewed.

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