Poolside.ai Raises $400M, Valued at $2B for Developer AI Tools

Paris is solidifying its position as a European hub for AI startups, with Poolside.ai, a Paris-based generative AI company, reportedly in the process of raising at least $400 million. This new funding round values the company at $2 billion, sources tell TechCrunch.

Major Investment from Bain Capital Ventures and DST

Bain Capital Ventures (BCV) and DST are in discussions to co-lead the funding round. BCV, a previous backer of Poolside, and DST, a new investor, are expected to drive this investment. PitchBook previously noted this could be an estimated $450 million round.

Previous Funding Success

Poolside gained attention last August with a substantial seed round, raising $126 million from investors including BCV, London’s Air Street, Abstraction, Scribble Ventures, and French firms New Wave and Frst. Other participants included Bpifrance, Felicis, Point Nine, and Redpoint. Neither the investors nor Poolside’s CEO responded to requests for comment.

Paris as a Rising AI Hub

Paris has seen other significant AI investments, with companies like Mistral and H raising nine-figure seed rounds. This trend suggests Paris could soon be recognized as a major center for AI innovation.

Market Dynamics and Poolside’s Unique Approach

The AI startup market has seen rapid growth, with companies like Anthropic and OpenAI raising substantial funds. Poolside aims to stand out by focusing specifically on enhancing software development tools for developers. CEO Jason Warner, former CTO of GitHub, and CTO Eiso Kant, previously of Athenian, bring deep experience in developer tools and DevOps.

Targeting Developer Efficiency

Unlike general-purpose large language models (LLMs), Poolside aims to help developers work more efficiently. This focus is expected to resonate with investors, aligning with Paul Graham’s advice to build tools that the creators themselves would use.

Potential and Monetization

Poolside aims to initially target developers before expanding to a broader audience. Early signs suggest the company is active and growing, with increased cloud services from IREN. While the general availability of its product remains unclear, the focus on co-pilot tools for developers is seen as a lucrative application of AI, offering clear needs, performance indicators, and monetization potential.

Conclusion

With significant funding and a clear vision, Poolside is poised to make a substantial impact in the AI and software development space. Investors are betting on its potential to streamline coding processes and enhance developer productivity.