Lambda Inc. Sells $917 Million Loan for Nvidia GPUs

Lambda Inc. is selling a $917 million leveraged loan to fund the purchase and installation of graphics processing units and related infrastructure under a contract with Nvidia Corp. Led by Morgan Stanley, the transaction is being issued through Lambda Compute II LLC and Lambda Cloud Canada Inc.

The loan features a 4.4-year maturity and is fully amortizing to remove refinancing risk for investors. Pre-marketing efforts for the debt generated significant interest, with order books reaching nearly $2 billion.

This financing strategy follows a trend among neocloud providers who use GPU-backed loans to access institutional capital markets. Under the leadership of CEO Michel Combes, Lambda is focusing its operations on North America and expanding into the construction of its own data centers to support the global AI buildout.