Nvidia is preparing to invest 1 billion dollars in Poolside.

Nvidia (NASDAQ:NVDA) plans to write a check for up to $1 billion to the artificial intelligence startup Poolside, which has quadrupled its value over the past 12 months, according to Bloomberg.

This deal allows Poolside to rise from $3 billion to $12 billion in 2024. The startup is raising a total of $2 billion, with commitments already exceeding $1 billion. Approximately $700 million of this amount is coming from existing investors.

Additionally, it is reported that the well-known asset management firm Magnetar Hedge Fund is in discussions to participate in the funding.

Poolside was founded in 2023 by former GitHub executive Jason Warner along with Eiso Kant, and it has offices in both the U.S. and Paris. The company is set to launch its first product, an enterprise software engineering platform, in 2024. Poolside announced that this system is currently being tested in government and defense sectors and serves as a foundation for developing artificial general intelligence.

Poolside’s platform combines AI capabilities across various environments, including development tools, terminals, agents, and enterprise applications. The core models work within security boundaries controlled by clients, ensuring that sensitive data remains under the clients' management.

Nvidia’s planned investment will start at $500 million and could expand to $1 billion if fundraising targets are met. The chipmaker has previously supported Poolside and will further solidify its role in the company’s growth.

Nvidia, under the leadership of CEO Jensen Huang, has become one of the most valuable publicly traded companies, expanding a network that offers opportunities for long-term partnerships in AI startups. Poolside is part of this growing ecosystem and aims to allocate a portion of the new funds to Nvidia’s GB300 chips.

According to Bloomberg, Nvidia has invested in 59 AI startups by mid-2023, surpassing the previous year’s count. The company also holds stakes in startups like Perplexity AI, an AI search platform, and Figure AI, which focuses on human-like systems.

"Our goal is to support AI startups rising on Nvidia," said Huang during Nvidia's GTC conference. "Our ecosystem is rich and our tools are highly effective."

The planned investment in Poolside is developing in parallel with its partnership with CoreWeave (NASDAQ:CRWV) to build one of the largest data centers in the U.S., which was announced on October 15. Named Project Horizon, this initiative is expected to provide 2 gigawatts of capacity at a facility in West Texas, enough to power approximately 1.5 million homes.

The company aims to work with local leaders in Pecos County to ensure that Project Horizon provides long-term benefits such as job opportunities, infrastructure investments, and workforce training for the region.