Nvidia has agreed to acquire Poolside's Model Factory and 109 employees for $6 billion, as revealed in an investor letter. The deal involves licensing the Model Factory, the system used by Poolside to build its Laguna model. The employees involved in the project are being offered positions at Nvidia. The acquisition is part of a broader strategy to strengthen Nvidia's position in the AI industry.
The acquisition includes a $1 billion investment at a $12 billion pre-money valuation. The three founders of Poolside are remaining with the company. According to the investor letter, the deal is neither an acquisition nor an acquihire, which typically refers to purchases driven mainly by talent. This approach allows tech companies to secure technology, expertise, and staff without triggering regulatory reviews that often accompany full acquisitions. Nvidia has executed similar deals with Groq and Enfabrica in the past.
Nvidia is already building its own open AI models in the Nemotron line, which places it in competition with some of its own customers. The company is reportedly distributing the $6 billion to its investors by the end of next year. The deal highlights Nvidia's ongoing efforts to expand its influence in the AI sector through strategic acquisitions and investments.
Source: thedecoder
