# Nvidia Pays $6B Licensing Deal to AI Startup Poolside Plus $1B Investment

> Nvidia is paying AI coding startup Poolside a striking $6 billion to license its Model Factory system, plus a $1 billion investment that values the company at $12 billion, according to Bloomberg. Model Factory is the machinery Poolside uses to build its open-weight Laguna coding models, and Nvidia is taking a non-exclusive license rather than buying the company outright. The structure is the interesting part. About 109 Poolside employees are moving to Nvidia while the co-founders stay put, and the whole thing is framed as a license and investment rather than an acquisition. That looks a lot like a way to absorb a company's people and technology while sidestepping the regulatory scrutiny that a formal takeover of an AI startup would now attract. It also quadruples Poolside's prior $3 billion valuation almost overnight and deepens Nvidia's push beyond selling chips into owning more of the AI software stack. For a chipmaker already sitting at the center of the boom, paying billions for coding-model know-how signals just how strategic that layer has become.

_Section: [Daily AI Updates](https://www.wortins.com/daily-ai) · Source: Bloomberg · Published Saturday, August 22, 2026_

## Wortins' read

Nvidia is paying AI coding startup Poolside a striking $6 billion to license its Model Factory system, plus a $1 billion investment that values the company at $12 billion, according to Bloomberg. Model Factory is the machinery Poolside uses to build its open-weight Laguna coding models, and Nvidia is taking a non-exclusive license rather than buying the company outright. The structure is the interesting part. About 109 Poolside employees are moving to Nvidia while the co-founders stay put, and the whole thing is framed as a license and investment rather than an acquisition. That looks a lot like a way to absorb a company's people and technology while sidestepping the regulatory scrutiny that a formal takeover of an AI startup would now attract. It also quadruples Poolside's prior $3 billion valuation almost overnight and deepens Nvidia's push beyond selling chips into owning more of the AI software stack. For a chipmaker already sitting at the center of the boom, paying billions for coding-model know-how signals just how strategic that layer has become.

## Source

[Read the full story at Bloomberg](https://www.bloomberg.com/news/articles/2026-08-20/nvidia-to-pay-ai-startup-poolside-a-6-billion-license-newcomer-says)

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