Nvidia is considering investing $1 billion in AI start-up Poolside, investing in another customer that could buy its GPU hardware.

As per a report from Bloomberg citing people familiar with the matter, the chip giant is considering a significant investment in Poolside that would quadruple the start-up's valuation.

Poolside is seeking to raise some $2bn at a $12bn valuation, and has thus far secured $1bn in commitments for the round, including $700m from one investor alone.

According to Bloomberg's sources, Nvidia's investment in the round would start at $500 million, and could reach $1bn if Poolside meets its fundraising targets.

CoreWeave-backer Magneter is also said to be in talks to invest in Poolside.

Both Nvidia and Magnetar declined to comment to Bloomberg.

Poolside raising funds at $12bn is a significant jump from the valuation of $3bn just last year. The company offers a product for coding automation, specifically targeting government and defense applications, and is further working on building "artificial general intelligence." The company was founded in 2023 by Jason Warner and Eiso Kant.

Earlier this month, Poolside signed an agreement with CoreWeave for Project Horizon, a planned 2GW data center in West Texas. In the interim, CoreWeave is providing Poolside with a cluster of Nvidia GB300 NVL72 systems with more than 40,000 GPUs. The AI startup is also a known customer of Fluidstack. It also previously leased a relatively small number of Nvidia H100 GPUs from Iris Energy.

Previous reports from Bloomberg suggested that the current fundraising will be used by Poolside for the purchase of Nvidia GPUs.

This year alone, Nvidia has invested in 59 AI startups, including Perplexity AI, and Figure AI.