AI coding startup Poolside secures $500M in Series B funding from eBay, Nvidia, and others
Poolside, a cutting-edge AI-powered software development platform, has successfully raised $500 million in its Series B funding round. The investment was led by Bain Capital Ventures and featured participation from prominent tech companies such as eBay (via eBay Ventures) and Nvidia. This significant influx of capital brings Poolside’s total raised funds to $626 million, with the startup now valued at $3 billion, according to Bloomberg.
Poolside was founded in 2022 by CEO Jason Warner and Eiso Kant, both seasoned software engineers. Warner previously served as the CTO of GitHub, where he oversaw the development of the AI-powered Copilot tool. Kant has co-founded several developer-focused startups, including engineering analytics firm Athenian.
The startup’s AI models aim to assist developers with tasks such as code completion and suggesting relevant code snippets based on context or codebase. Poolside’s customer base primarily consists of Global 2000 companies and public-sector agencies, although few have been publicly disclosed.
The Series B funding will enable Poolside to expand its go-to-market and R&D efforts, as well as bring 10,000 Nvidia GPUs online for training future models, according to Warner. This investment comes amid growing interest in AI-powered assistive coding tools, with the majority of developers adopting them in some form, according to GitHub’s latest poll.
Venture capitalists are also showing enthusiasm for the market, with recent investments totaling hundreds of millions of dollars. For instance, generative AI coding firm Magic secured $320 million in August, while GitHub Copilot competitor Codeium closed a $150 million fundraising round on the same day. Cognition, known for its viral coding assistant Devin, secured $175 million at a $2 billion valuation earlier in August.
Polaris Market Research predicts that the AI coding tools market could reach a staggering $27 billion by 2032. Given the current trends, this forecast doesn’t seem too far-fetched.
Other investors participating in Poolside’s Series B include 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.
