Nvidia Drops $6B on Poolside's AI Model Factory
Nvidia is making a significant move in the AI space by acquiring Poolside's 'Model Factory' software and taking on its 109 employees for $6 billion. The deal, which also includes an investment of $1 billion at a $12 billion pre-money valuation, marks a major expansion of Nvidia's capabilities in artificial intelligence.
The 'Model Factory' is the system used by Poolside to build its Laguna model, and Nvidia will be licensing this technology as part of the acquisition. This move comes as Nvidia looks to strengthen its position in the AI market, where it competes with some of its own customers through its Nemotron line of open AI models.
The three founders of Poolside are staying on after the deal, and the 109 employees who worked on the Laguna model will be receiving job offers from Nvidia. This acquisition is not being framed as a traditional buyout or an 'acquihire', a purchase driven mainly by the talent, but rather a strategic investment in the AI space.