Lambda, an AI cloud company that purchases computing chips and leases them to businesses, has secured $1 billion in private, short-term debt to acquire Nvidia’s AI chips for leasing to customers such as Microsoft, according to a report by Bloomberg. The financing, arranged by JP Morgan Chase, suggests that Lambda anticipates a rapid deployment of the chips and the subsequent generation of revenue, enabling the company to repay the debt promptly using the incoming cash flow.
This $1 billion debt arrangement follows a series of loans Lambda has utilized to fund GPU infrastructure for specific clients. In May, the company closed a $1 billion secured credit facility, and recently announced the closing of a $926 million loan to fund Nvidia GB300 GPUs, a newer chip model from Nvidia, for a deployment under contract with Nvidia. The debt financing aligns with Lambda’s reported discussions for a $3 billion pre-IPO round, building on the $1.5 billion in venture capital raised last November, which valued the company at $5.43 billion post-money, as per PitchBook data. Source