NVIDIA invests $60 billion in Poolside to compete with chinese open-source AI models

Nvidia has agreed to pay $60 billion for a non-exclusive software license of AI models from the startup Poolside, while also offering 109 employees jobs. The deal includes an additional $10 billion investment, valuing Poolside at $120 billion. Poolside will remain an independent company, with its three founders continuing to lead the business. The move is part of Nvidia’s strategy to strengthen its position in the AI industry and develop models that can compete with Chinese open-source AI models such as DeepSeek and Kimi K3. Nvidia, the world’s largest AI chipmaker, is increasingly focusing on open-source AI models, having previously developed the Nemotron series, though these did not reach the performance levels of Chinese models. By investing in AI model development, Nvidia aims to boost demand for its inference chips as AI adoption grows. The deal highlights Nvidia’s ongoing efforts to expand its influence in the AI sector and solidify its role in the global technology landscape.