Nvidia is reportedly spending $6 billion to license artificial intelligence model-development software, specifically Model Factory, from Poolside. This move is part of Nvidia's strategy to develop powerful open-weight AI models, intending to compete with leading Chinese AI labs such as DeepSeek. The deal also involves Nvidia making offers to hire 109 Poolside employees who were instrumental in developing Poolside's open-source model, Laguna.
In addition to the $6 billion licensing agreement, Nvidia will invest $1 billion in Poolside, valuing the company at $12 billion pre-money. Poolside's three co-founders are expected to remain with the company. This arrangement is described not as an acquisition or acquihire, but rather a strategic partnership to enhance Nvidia's capabilities in the open-source AI sector.
This investment aligns with a broader effort by Nvidia, which is estimated to be spending roughly $26 billion on open-source AI initiatives. This strategy aims to foster a wider ecosystem of independent model builders, which in turn is expected to drive increased demand for Nvidia's inference chips. Box CEO Aaron Levie notes that this push by American tech companies like Nvidia and Meta to develop near-frontier open-source models is crucial, especially for use cases in government agencies and large banks that might be hesitant to use non-domestic open-source models.
