Nvidia is preparing to invest 1 billion dollars in Poolside.

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

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

Additionally, it has been reported that the well-known asset management firm Magnetar Hedge Fund is in talks 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 forms a cornerstone for its goal of developing artificial general intelligence.

Poolside's platform integrates artificial intelligence capabilities across various environments, including development tools, terminals, agents, and enterprise applications. Core models operate within security boundaries controlled by the customer, ensuring that sensitive data remains under the management of the clients.

Nvidia's planned investment will start at $500 million and could expand up to $1 billion if the 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 while expanding a network that offers the potential for long-term partnerships in the field of artificial intelligence startups. Poolside is part of this growing ecosystem, aiming to allocate a portion of its new funds to Nvidia's GB300 chips.

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

“Our goal is to support AI startups that rise on Nvidia,” Huang stated during Nvidia's GTC conference. “Our ecosystem is rich, and our tools are highly effective.”

Poolside's planned investment is developed in parallel to its partnership with CoreWeave (NASDAQ:CRWV) to build one of the largest data centers in the U.S. under Project Horizon. This initiative is expected to provide a 2-gigawatt capacity at a facility in West Texas, which will power approximately 1.5 million homes.

The company aims to provide long-term benefits such as job opportunities, infrastructure investments, and workforce training for the region through collaboration with local leaders in Pecos County on Project Horizon.