Lambda Inc. Seeks $3 Billion in Pre-IPO Funding Round

Lambda Inc. is in negotiations to raise up to $3 billion in a pre-IPO funding round. The California-based AI cloud-computing provider is discussing a valuation of $12 billion or more, with the capital injection intended to prepare the firm for an initial public offering as early as next year.

Lambda rents access to AI chips and infrastructure and expects to generate more than $1.5 billion in revenue this year. The company has already received multiple term sheets for the current round.

The firm is backed by several investors, including Nvidia Corp. and ARK Invest. TWG Global, which led a previous funding round of more than $1.5 billion in November, also remains a backer.