Nvidia Licenses Poolside's AI Tech, Hires 109 Staff in $6 Billion Deal

Nvidia has agreed to a deal worth up to $7 billion with AI startup Poolside, securing a nonexclusive license to its core software and hiring a significant portion of its team. The transaction, revealed in a letter to investors on August 21, 2026, includes a $6 billion payment for rights to Poolside's "Model Factory" technology, a $1 billion investment that values the company at $12 billion before the new funding, and job offers for 109 engineers and researchers.

The arrangement is structured as a licensing agreement and talent hire, not an acquisition. In their letter, Poolside's founders stated clearly, "This is not an acquisition and it is not an acquihire." The three cofounders will remain with the Paris-based company, which will continue to operate independently. Poolside intends to distribute the $6 billion licensing fee to its investors by the end of 2027.

The deal provides Nvidia with broad access to Poolside's proprietary platform for developing AI models focused on software engineering, coding, and debugging. Poolside has built its reputation on models like the Laguna series, including the 118-billion-parameter Laguna S 2.1 released in July 2026. The company holds...