Answer
$$y=\tan(\frac{1}{2}x^{2} ).$$
Work Step by Step
By separation of variables, we have
$$\frac{dy}{y^2+1}=xdx$$
then by integration, we get
$$\tan^{-1}y=\frac{1}{2}x^{2}+c\Longrightarrow y=\tan(\frac{1}{2}x^{2}+c).$$
Now, since $y(0)=0$, then $c=0$.
So the general solution is given by $$y=\tan(\frac{1}{2}x^{2} ).$$