Poolside, a Paris-based AI startup, has raised an impressive $500 million in a Series B funding round. The company is developing AI models that can create software code. The funding round was led by Bain Capital Ventures.
It also saw participation from major tech firms like eBay, through eBay Ventures, and Nvidia. Other investors included LG Technology Ventures, Felicis Ventures, Redpoint Ventures, Citi Ventures, Capital One Ventures, HSBC Ventures, DST Global, StepStone Group, Schroders Capital, Premji Invest, Dorsal Capital, BAM Elevate, Adams Street, and Fin Capital. This latest investment brings Poolside’s total raised capital to $626 million.
Sources say the company is now valued at $3 billion. Poolside was founded last year by CEO Jason Warner and Eiso Kant. Warner previously served as the CTO of GitHub.
Kant is a seasoned entrepreneur who has co-founded several developer-focused startups, including engineering analytics firm Athenian. The duo first met in 2017. They spent the next six years planning an AI-powered assistive tool suite for developers.
Warner and Kant believe software development will be the first broad capability where AI will reach and surpass human-level intelligence.
AI-powered coding tools investment
Poolside develops its own AI models to assist with various coding tasks.
These include code autocompletion and context-relevant code suggestions. The company’s clientele primarily consists of Global 2000 companies and public-sector agencies. The Series B funding will allow Poolside to enhance its R&D efforts.
It also plans to bring 10,000 Nvidia GPUs online to train future AI models. Poolside has yet to release a product publicly. However, its first tool is expected to be an “intelligent code assistant” for developers.
The company promises further details in the coming weeks. This initial product is already being tested by several large enterprises. The AI coding tool market is experiencing robust investment activity.
This reflects its increasing importance. Polaris Market Research predicts that the AI coding tools market could be worth $27 billion by 2032. Poolside’s rapid growth and prominent investor backing underscore the transformative potential of AI-driven development tools in the tech industry.
The company’s leadership and technology aim to revolutionize coding and make it accessible to anyone who wants to build software.
