Nvidia Drops $6B to License Poolside Tech and Build Open-Weight AI Rival
NVDA sits 31% above its 52-week low of $164.07.
Summary
Nvidia is spending $6 billion to license Poolside's technology and hire over 100 of its engineers, aiming to build a powerful open-weight AI model that competes with Chinese models like DeepSeek and Kimi K3. The deal also includes a $1 billion investment in Poolside at a $12 billion pre-money valuation. This move positions Nvidia directly against frontier U.S. labs like OpenAI and Anthropic, while also countering the rise of Chinese open-weight models. The Poolside engineers will work on Nvidia's Nemotron project, which is developing open-weight models. This follows Nvidia's recent launch of the Nemotron Coalition and CEO Jensen Huang's public advocacy for open-weight AI. The deal underscores Nvidia's strategy to dominate multiple AI battlegrounds and secure its market position.
At the time of this announcement, NVDA was trading at $215.38 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.2T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.