Lambda Inc. Raises $1 Billion to Buy Nvidia GPUs

Lambda Inc. raised approximately $1 billion in private short-dated debt to finance the purchase of graphics processing units from Nvidia Corp. JPMorgan Chase & Co. arranged the transaction, which was marketed to private placement investors.

The acquired chips will be leased by Microsoft Corp. under a collaboration established last year to deploy AI infrastructure powered by tens of thousands of GPUs. This financing follows a separate $926 million loan completed earlier in August for similar infrastructure costs.

As a neocloud provider, Lambda is reportedly in discussions to raise up to $3 billion in a funding round. This capital raise may precede an initial public offering planned for next year.