{"id":651270,"date":"2026-08-22T21:07:26","date_gmt":"2026-08-22T21:07:26","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/651270\/"},"modified":"2026-08-22T21:07:26","modified_gmt":"2026-08-22T21:07:26","slug":"why-is-nvidia-nvda-using-a-7-billion-deal-structure-instead-of-buying","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/651270\/","title":{"rendered":"Why Is Nvidia (NVDA) Using A $7 Billion Deal Structure Instead Of Buying?"},"content":{"rendered":"\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/simplywall.st\/features\/portfolio?utm_medium=finance_user&amp;utm_campaign=portfolio_head_cta&amp;utm_source=yahoo&amp;blueprint=4721487\" data-ylk=\"slk:Track%20your%20investments%20for%20FREE;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Track your investments for FREE&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Track your investments for FREE<\/a> with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.  <\/p>\n<ul class=\"yf-1jsc1up\">\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Nvidia (NasdaqGS: NVDA) has agreed a reported US$7b Poolside AI licensing deal that combines a non exclusive technology license, investment and key hires.  <\/p>\n<\/li>\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The structure uses licensing plus hiring Poolside AI employees instead of a full acquisition, which can attract more regulatory scrutiny.  <\/p>\n<\/li>\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The agreement is intended to give Nvidia greater control over industrial scale AI model capacity while keeping Poolside AI independent.  <\/p>\n<\/li>\n<li class=\"yf-1jsc1up\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Investors are watching whether this template becomes a repeatable way for large tech companies to expand AI capabilities without traditional M&amp;A.  <\/p>\n<\/li>\n<\/ul>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Nvidia is far from the only company tied to the build out of AI infrastructure, so it can be useful to compare this news with a broader group of stocks exposed to similar demand trends through <a href=\"https:\/\/simplywall.st\/discover\/investing-ideas\/473744\/ai-infrastructure-stocks\/global?utm_medium=finance_user&amp;utm_campaign=cta_screener_ai_infrastructure&amp;utm_source=yahoo&amp;blueprint=4721487\" data-ylk=\"slk:55%20AI%20infrastructure%20stocks;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;55 AI infrastructure stocks&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">55 AI infrastructure stocks<\/a>.  <\/p>\n<p>    <a href=\"https:\/\/www.simplywall.st\/company\/id\/08830e11-eecd-4a85-982d-b0ae1dfd6f7a?utm_medium=finance_user&amp;utm_campaign=infographic&amp;utm_source=yahoo\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NasdaqGS:NVDA Earnings &amp; Revenue Growth as at Aug 2026\" height=\"613\" width=\"960\" class=\"yf-1f8hkhu loader\"\/><\/a> NasdaqGS:NVDA Earnings &amp; Revenue Growth as at Aug 2026           <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">NVIDIA operates as a data center scale AI infrastructure company across the US, Europe and Asia, so deals like this are closely tied to its role in supplying computing power for large AI models. For you as an investor, it highlights how NVIDIA is working to deepen its ecosystem beyond the sale of chips alone.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/www.simplywall.st\/company\/id\/08830e11-eecd-4a85-982d-b0ae1dfd6f7a?utm_medium=finance_user&amp;utm_campaign=cta_news_hidden_strengths&amp;utm_source=yahoo\" data-ylk=\"slk:4%20things%20going%20right%20for%20NVIDIA%20that%20this%20headline%20doesn&#039;t%20cover.;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;4 things going right for NVIDIA that this headline doesn&#039;t cover.&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">4 things going right for NVIDIA that this headline doesn&#8217;t cover.<\/a>  <\/p>\n<p>        Nvidia&#8217;s Poolside AI move tests the &#8220;full stack infrastructure&#8221; thesis          <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The central bet in Nvidia&#8217;s Narrative is that AI demand and full stack offerings will keep deepening customer reliance on its platform. This US$7b Poolside AI licensing structure speaks directly to that story, because it targets control of AI model capacity without relying on classic acquisitions.  <\/p>\n<blockquote class=\"neo-blockquote yf-d8g4ww\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;The company is capturing a growing share of the expanding value chain by deploying full stack AI infrastructure, deepening customer lock in, boosting recurring software revenues, and supporting high gross margins&#8230;&#8221;  <\/p>\n<\/blockquote>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><a href=\"https:\/\/simplywall.st\/narratives\/391kfoxw-nvda-expanding-ai-demand-will-drive-major-data-center-investments-through-2026?utm_medium=finance_user&amp;utm_campaign=cta_news_narrative_link&amp;utm_source=yahoo&amp;blueprint=4721487\" data-ylk=\"slk:Read%20the%20full%20NVIDIA%20narrative;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Read the full NVIDIA narrative&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><strong>Read the full NVIDIA narrative<\/strong><\/a><a href=\"https:\/\/simplywall.st\/narratives\/391kfoxw-nvda-expanding-ai-demand-will-drive-major-data-center-investments-through-2026?utm_medium=finance_user&amp;utm_campaign=cta_news_narrative_link&amp;utm_source=yahoo&amp;blueprint=4721487\" data-ylk=\"slk:to%20see%20the%20case%20behind%20these%20numbers;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;to see the case behind these numbers&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"> to see the case behind these numbers<\/a>  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">For that thesis, the Poolside deal clearly supports the catalyst that Nvidia can shift from pure GPU supplier to wider AI infrastructure partner. By licensing Model Factory technology, investing US$1b and hiring key staff while Poolside stays independent, Nvidia strengthens its software and services layer that sits on top of its chips and networking.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">At the same time, this structure puts pressure on a different part of the Narrative, which flags rising costs and ecosystem risks as Nvidia pushes further into AI factories. Large off balance sheet style commitments and aggressive talent hiring can increase complexity, especially as rivals like AMD and Broadcom also chase AI platform roles and customers weigh custom silicon options.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">For you as an investor, this Poolside AI news only really matters in the context of which Nvidia story you believe, and how much weight you give to the benefits and risks of its expanding AI infrastructure ecosystem. To ensure you&#8217;re always in the loop on how the latest news impacts the investment narrative for NVIDIA, head to the <a href=\"https:\/\/simplywall.st\/community\/narratives?utm_medium=finance_user&amp;utm_campaign=cta_news_community_narratives&amp;utm_source=yahoo&amp;blueprint=4721487\" data-ylk=\"slk:community%20page%20for%20NVIDIA;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;community page for NVIDIA&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">community page for NVIDIA<\/a> to never miss an update on the top community narratives.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.<\/strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Companies discussed in this article include <a href=\"https:\/\/finance.yahoo.com\/quote\/NVDA\" data-ylk=\"slk:NVDA;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;NVDA&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"nofollow noopener\">NVDA<\/a>.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><strong>Have feedback on this article? Concerned about the content? <\/strong><a href=\"https:\/\/investor-research.typeform.com\/to\/wvg6MFri#feedback_token=NDcyMTQ4NzpjOWM1NDE0ZDc0OGM2OTBl&amp;company=NasdaqGS:NVDA&amp;blueprintid=4721487\" data-ylk=\"slk:Get%20in%20touch;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Get in touch&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><strong>Get in touch<\/strong><\/a><strong> with us directly.<\/strong> Alternatively, email <a href=\"https:\/\/finance.yahoo.com\/technology\/ai\/articles\/mailto:editorial-team@simplywallst.com?subject=Re%3A%20Your%20article%20on%20NasdaqGS%3ANVDA%20(yahoo)%20from%2022nd%20August%202026\" data-ylk=\"slk:editorial-team%40simplywallst.com;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;editorial-team@simplywallst.com&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">editorial-team@simplywallst.com<\/a>  <\/p>\n","protected":false},"excerpt":{"rendered":"Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million&hellip;\n","protected":false},"author":2,"featured_media":651271,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,18,19,17,292,82],"class_list":["post-651270","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-eire","tag-ie","tag-ireland","tag-nvidia","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117141205464171328","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/651270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=651270"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/651270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/651271"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=651270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=651270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=651270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}