Poolside, an AI-powered software development platform, has raised $500 million in new funding.
The cash came in the form of a Series B led by Bain Capital Ventures, with participation from big tech players like eBay (via eBay Ventures) and Nvidia. This brings Poolside's total funding to $626 million. Bloomberg reported that the startup is currently valued at $3 billion.
TechCrunch revealed this summer that Poolside is in the midst of raising a significant amount of funding.
Poolside, which has offices in the US and Europe, was founded last year by CEOs Jason Warner and Eiso Kant, both software engineers. Warner is the former CTO of GitHub and also led engineering organizations at Canonical and Heroku. Kant previously co-founded several development-focused startups, including engineering analytics firm Athenian.
Warner, who developed GitHub's AI-powered Copilot tool, met Kant in 2017. Over the next six years, the two planned a suite of AI-driven assistance tools for developers that became Poolside.
Poolside, like competing AI-assisted coding tools, develops proprietary AI models to assist with tasks such as code auto-completion and suggesting code that may be relevant to a given context or codebase. . The company's customers are primarily Global 2000 companies and public sector institutions. Very little has been published.
The Series B funding will allow Poolside to bring 10,000 Nvidia GPUs online to train future models, strengthening the company's go-to-market and research and development efforts, Warner said. I am.
Despite security, copyright, and reliability concerns about AI-powered assisted coding tools, developers are enthusiastic about them, with a majority of respondents in GitHub's latest survey indicating that they are using some form of assisted coding tools. of respondents say they are using AI tools. GitHub reported in April that Copilot has more than 1.8 million paid users and more than 50,000 enterprise customers.
Driven by adoption trends, VCs are pouring huge amounts of money into AI coding startups. Generative AI coding company Magic raised $320 million in August. On the same day, GitHub Copilot competitor Codeium closed a $150 million funding round. In early August, Cognition, known for its viral coding assistant Devin, secured $175 million at a $2 billion valuation.
Polaris Research predicts that the AI coding tools market could reach a value of $27 billion by 2032. At this rate, it doesn't seem all that far-fetched.
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, Fin Capital also in Poolside Series B I'm investing. .