NVIDIA strikes $6B poolside deal, invests $1B at $12B valuation
NVIDIA just made a $6 billion deal with Poolside, an AI startup. More than 100 Poolside employees, mainly engineers, and NVIDIA will gain access to Poolside's technology.
Plus, NVIDIA is investing another $1 billion in Poolside, with a pre-money valuation of $12 billion.
NVIDIA's Nemotron Coalition strengthened
This move strengthens NVIDIA's Nemotron Coalition, which kicked off earlier this year with partners like Mistral and Perplexity, to help the US compete with big Chinese players like DeepSeek and Moonshot in open AI models.
The deal means NVIDIA can build flexible and affordable models, unlike pricier closed systems from companies like OpenAI.
Memory prices rise, NVIDIA earnings eyed
The timing is interesting: memory chip prices are climbing thanks to heavy demand from AI data centers, which could make running NVIDIA-powered servers more expensive next year.
With earnings coming up on August 26, investors are watching closely to see how these changes impact NVIDIA's race for AI dominance.