AI computing startup Lambda to raise $4B ahead of planned IPO
techcrunch ·
AI computing startup Lambda is raising up to $4 billion in its latest funding round, which values the company at $14.5 billion on a pre-money basis. This investment, led by Coatue Management and Blackstone, serves as a potential final private round before Lambda's planned initial public offering in 2027. The company reported a significant surge in its backlog, growing from $15 billion to $50 billion between June and September. However, much of this increase stems from a $35 billion commitment secured from Anthropic in late August. Investors remain confident in Lambda due to the scarcity of reliable GPU capacity and strong contracts with major AI labs. Despite high demand, neocloud providers face challenges related to the high costs of data center buildouts, often funded through debt. Lambda recently raised an additional $1 billion in debt to support these infrastructure needs as lenders become more selective. If the IPO proceeds, Lambda will join other Nvidia-backed neoclouds like CoreWeave and Nebius that rely on stock performance to fund expansion.
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