Poolside, an AI startup focused on software development, is in talks to raise $500 million in a new funding round, pushing its valuation to $3 billion despite not yet releasing a product. Bain Capital Ventures, an existing investor, is expected to lead the round, though neither Bain nor Poolside have commented.

Founded in early 2023 by former GitHub CTO Jason Warner and software entrepreneur Eiso Kant, Poolside aims to create AI capable of writing software, with plans to expand into other fields. The startup, which relocated to Paris after a $126 million seed round, has shown a demo of its code-generation product to investors, aiming to attract developers.

Poolside’s approach sets it apart from competitors like Mistral AI, which targets corporate clients. The market for AI coding tools is competitive, with major players like Microsoft’s GitHub Copilot and other venture-backed startups also in the race. Poolside has secured access to NVIDIA GPUs through deals with Iris Energy Ltd. to support its development efforts.