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● TRACKER Updated 22d ago · 6 sources tracked

NVIDIA Becomes A Buyer Of Last Resort For Its Own GPUs By Earmarking $7 Billion For Poolside, Just As Sam Altman Admits He Was Wrong On The AI Timeline

Nvidia is paying Poolside $6 billion for a licensing agreement to develop a powerful U.S. alternative to Chinese and other American AI models. As part of the arrangement, Nvidia will tap Poolside staff. Poolside has also raised $1 billion in additional funding, bringing the company's valuation to $12 billion. The deal positions Nvidia to compete directly in the AI model space while providing a strategic hedge against international competition.

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  • ✓ Nvidia is paying Poolside $6 billion for a license.
  • ✓ The deal aims to create a U.S. alternative to Chinese AI models.
  • ✓ Nvidia intends to utilize Poolside staff.
🛡️ Source Corroboration: 6 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

Nvidia has committed $6 billion to a licensing deal with Poolside to build competing AI models.

Live updates

  1. Nvidia enters $6 billion licensing deal with Poolside to counter AI models

    Nvidia is paying Poolside $6 billion for a licensing agreement to develop a powerful U.S. alternative to Chinese and other American AI models. As part of the arrangement, Nvidia will tap Poolside staff. Poolside has also raised $1 billion in additional funding, bringing the company's valuation to $12 billion. The deal positions Nvidia to compete directly in the AI model space while providing a strategic hedge against international competition.

    Why it matters

    The move signals Nvidia's shift from providing hardware to competing in the software and model layer of the AI stack. This strategy aims to reduce reliance on third-party model developers who purchase Nvidia GPUs.

    What is confirmed

    • Nvidia is paying Poolside $6 billion for a license.
    • The deal aims to create a U.S. alternative to Chinese AI models.
    • Nvidia intends to utilize Poolside staff.

    Still unconfirmed

    • Poolside raised $1 billion for the remaining company at a $12 billion valuation.

    What to watch next

    • Official confirmation of the total deal valuation
    • Details on the specific staff Nvidia is tapping from Poolside
    • Product launch dates for the new U.S. AI models
    Sources used for this update (6)
    1. WSJ — Nvidia Is Spending $6 Billion to Build a Powerful U.S. Alternative to Chinese AI
    2. Newcomer | Substack — SOURCES: Poolside Strikes $6 Billion Licensing Deal with Nvidia & Raises $1 Billion for Remaining Company at $12 Billion Valuation
    3. Seeking Alpha — Nvidia to compete with US, Chinese AI models under $6B Poolside deal
    4. Bloomberg.com — Nvidia to Pay Poolside a $6 Billion License, Tap Startup’s Staff
    5. Yahoo Finance — Why Is Nvidia (NVDA) Using A $7 Billion Deal Structure Instead Of Buying?
    6. Wccftech — NVIDIA Becomes A Buyer Of Last Resort For Its Own GPUs By Earmarking $7 Billion For Poolside, Just As Sam Altman Admits He Was Wrong On The AI Timeline
    confidence 90%
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