Paris-based AI startup Poolside is reportedly in talks to raise close to $500 million at a $3 billion valuation, according to Bloomberg.
Poolside is working on developing a large language model (LLM) similar to ChatGPT, specifically designed to write software code. Despite keeping its business plan under wraps, the company has revealed on its website that it is training its LLM by having it complete millions of tasks across tens of thousands of real-world software projects.
Currently focused on attracting developers, Poolside has demonstrated a code-generation product to potential investors, a source familiar with the situation told Bloomberg news. Bain Capital Ventures, an existing backer of the company, is said to be leading the latest funding round.
Poolside was founded in April 2023 by Jason Warner and Eiso Kant. Warner, previously CTO at GitHub, was instrumental in launching Copilot, an AI-powered coding assistant, in 2021. Kant, on the other hand, co-founded source{d} in 2016, one of the first companies to apply AI to code analysis.
In August 2023, Poolside raised a significant $126 million seed round and subsequently relocated its headquarters from the U.S. to Paris. This move coincided with French President Emmanuel Macron’s announcement of a €500 million initiative aimed at fostering AI innovation.
France, particularly Paris, is rapidly becoming a hub for AI startups. In June, OpenAI competitor Mistral secured €600 million at a €5.8 billion valuation, while in May, Holistic (now known as H) raised $200 million, valuing the company at $370 million. Both companies are headquartered in Paris.
Poolside shares similarities with Mistral, as both are building LLMs focused on coding. However, while Mistral is primarily targeting enterprise clients, Poolside is concentrating on the developer community.
