San Francisco-based AI startup building AI for software development dubbed as Poolside, has secured $500 million in a Series B funding round led by Bain Capital Ventures. The round included notable institutional investors such as DST Global, StepStone Group, Schroders, and several corporate venture arms like NVIDIA, Citi Ventures, and Capital One Ventures.
This funding follows a $100 million Series A and $26 million seed round, positioning the company for further growth in AI-driven software development solutions.
Just a day back, we also reported about how this AI-driven supply chain platform called Ameba raised $7.1M to boost global expansion. It’s an interesting read too.
Who are Poolside
Founded in 2023 by Jason Warner, former CTO at GitHub, and Eiso Kant, founder of AI-for-code company source{d}, Poolside aims to build the world’s most advanced AI for software development. According to Warner, the company’s mission is to create a system where AI not only assists but surpasses human capabilities in software engineering. He stated, “We believe software development will be the first broad capability where AI will reach and surpass human-level intelligence.”
Poolside’s proprietary approach, known as Reinforcement Learning from Code Execution Feedback (RLCEF), enables its AI models to improve coding efficiency by learning from developers’ interactions. This method is unique in its application, allowing AI models to continuously evolve by processing real-time feedback from complex environments. The company has already started pilot projects with some of the largest global enterprises, focusing on sectors where security and privacy are paramount.
Enrique Salem, a partner at Bain Capital Ventures, highlighted the significance of Poolside’s approach: “Their success will benefit everyone…advancing AI for software advances all of AI.” Salem emphasized that Poolside’s unique training approach, leveraging reinforcement learning at scale, sets it apart from competitors.
Other investors share similar optimism about the company’s potential. Matt Carbonara, Head of Enterprise Tech Investing at Citi Ventures, underscored Poolside’s commitment to privacy and security. “With Poolside, customers get the best of both worlds: not only does the data shared with the model remain private, but the model continuously learns from interactions with developers,” Carbonara explained.
What’s the French connection?
Poolside was founded in the US but gained significant attention after launching a subsidiary in Paris last year. The startup secured its seed funding from various investors in France, including French billionaire Xavier Niel, business angels Rodolphe Saadé and Motier Ventures, as well as Bpifrance, NewWave, and Frst.
Reportedly, the company remains headquartered in the US but has established a team across both continents, with a strong emphasis on applied research and engineering expertise in Europe.
What problem is the startup trying to solve
Poolside’s immediate goal is to deliver a smart code assistant powered by its proprietary AI models, which will streamline the development process for enterprise clients. The focus on large enterprises such as those in the Global 2000 and public sectors speaks to the complexity of environments the company is targeting. These clients prioritize both security and scalability, and Poolside’s foundational model is designed to meet those needs.
To support this ambitious goal, Poolside has significantly invested in infrastructure, bringing 10,000 NVIDIA GPUs online, one of the world’s largest AI training clusters. This computational power will fuel the continued development of its AI models, further positioning Poolside to lead in the AI-for-software-development space.
Moreover, the company’s team includes experts from top tech firms such as DeepMind, Yandex, Amazon, and Uber, strengthening its research and development capabilities. This focus on applied research ensures that Poolside’s technology will remain at the cutting edge, providing scalable and secure solutions for its clients.
What are the market implications and challenges
As Poolside prepares to bring its AI-driven tools to market, it faces competition from other companies developing similar technologies, such as GitHub’s Copilot and OpenAI’s Codex. However, Poolside differentiates itself by emphasizing its proprietary reinforcement learning model and its focus on enterprise needs. Jason Warner, who played a key role in the development of Copilot while at GitHub, believes that Poolside’s approach could drive significant advancements in AI for coding.
Erica Brescia, Managing Director at Redpoint Ventures, pointed out the founders’ deep experience in AI and software development. She said, “There will only be a few companies who can achieve human-level intelligence, and these two couldn’t not build what is now Poolside.”
What do we think about the startup
Poolside’s $500 million Series B funding positions the company to make significant strides in the development of AI-driven software tools. With a strong focus on enterprise needs, privacy, and security, the company aims to revolutionize software development by making advanced AI accessible to all developers. As Enrique Salem of Bain Capital Ventures put it, Poolside is not just advancing software development but also pushing forward AI’s broader capabilities.
As the company continues to evolve its technology and expand its reach, the industry will be closely watching whether Poolside can live up to its promise of delivering AI that surpasses human intelligence in software development.
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