Paris has quickly established itself as a major European center for AI startups, and now another deal in the works could cement that position even further. Poolside.ai, a generative AI company based in Paris that builds tools to speed up software development, is in the process of raising at least $400 million on a post-money valuation of $2 billion, sources tell TechCrunch. Bain Capital Ventures (BCV) and DST are in talks to co-lead the round. BCV is a previous backer of the company, while DST is a new investor. Bain’s participation has been previously reported, with PitchBook estimating this to be a $450 million round.

Poolside made a splash last August when it raised $126 million in a seed round from investors including BCV, Air Street, Abstraction, Scribble Ventures, New Wave, Frst, Bpifrance, Felicis, Point Nine, and Redpoint. None of the investors commented for this story, and Poolside’s CEO did not respond to a request for comment. Other notable AI startups in Paris, like Mistral and H, have also raised nine-figure seed rounds, further establishing the city as a hub for AI innovation. Given the rapid pace of AI investment globally, with companies like Anthropic and OpenAI raising billions, questions arise about the necessity of another foundational AI company.

Poolside’s significant funding is driven by several factors. The strength of its founding team, led by CEO Jason Warner, former CTO of GitHub, and CTO Eiso Kant, founder of Athenian, provides a strong foundation. Their focus on enhancing developer productivity through generative AI tools addresses a specific and critical need. Unlike general large language models, Poolside aims to help developers work faster, a problem that resonates with investors. Early signs indicate growth, with Poolside ramping up its cloud services deal with IREN in April. Monetization potential is clear, as co-pilot tools for developers present a straightforward and large market opportunity, offering a winning combination for investors.