AI Cloud Provider Lambda Adds $1B in Debt to Expand Chip Supply for Microsoft
aiinsider ·
Lambda, an AI cloud company that leases computing chips, has raised $1 billion in private, short-dated debt to buy Nvidia AI chips that it will lease to Microsoft, according to Bloomberg. The deal was arranged by JP Morgan Chase and reflects Lambda's expectation that it can deploy the chips quickly and generate enough revenue to repay the debt. This financing follows a series of recent loans, including a $1 billion secured credit facility in May and a $926 million loan finalized this week to fund Nvidia GB300 GPUs under a contract to supply chips to Nvidia itself. The company is also reportedly in discussions for a $3 billion pre-IPO funding round, after raising $1.5 billion in venture capital last November at a $5.43 billion post-money valuation. Lambda's debt reliance is part of a broader industry trend, with banks and technology companies raising more than $400 billion in AI-related debt globally so far in 2026.
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