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NVIDIA Secures $7 Billion Licensing and Investment Deal with AI Startup Poolside

NVIDIA has entered into a significant $7 billion agreement with the AI startup Poolside to license its technology and hire the majority of its engineering staff. The deal includes a $1 billion investment at a $12 billion valuation, allowing NVIDIA to gain greater control over industrial-scale AI model capacity while maintaining Poolside's independence. By utilizing a licensing and hiring structure rather than a full acquisition, NVIDIA aims to reduce regulatory scrutiny while strengthening its software and services layer. This move allows the GPU giant to hedge against potential fluctuations in GPU demand by establishing a viable ecosystem of open-weight AI models. Specifically, NVIDIA intends to leverage Poolside's expertise to improve its Nemotron AI models. This strategic shift positions NVIDIA as a broader AI infrastructure partner rather than just a chip supplier. As the market faces potential oversupply, NVIDIA's internal workloads will provide a buffer. This move also addresses the slower AI adoption timeline acknowledged by Sam Altman, who noted that the economy will incorporate AI at a much slower pace than previously expected.

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