Lambda, a cloud provider specializing in GPU rentals for AI training, is reportedly seeking up to $4 billion in new funding. The round is being led by Blackstone and Coatue Management and is valued at $14.5 billion pre-money. If successful, the post-money valuation would reach $18.5 billion.
This financing is expected to be the company's final private round before a planned IPO in 2027. Lambda, founded in 2012 by Stephen and Michael Balaban, has raised over $2.3 billion in equity since its inception, including a Series D round in February 2025 that valued the firm at $2.5 billion.
The company's backlog of unfilled orders has grown significantly, rising from $15 billion in June to $50 billion in September. This backlog includes a six-year agreement involving a 350-megawatt data center in Texas, where Nvidia acts as the primary tenant and chip supplier.
Nvidia maintains a multifaceted relationship with Lambda as an investor, chip supplier, and customer. Reports indicate that Nvidia has signed a $1.5 billion deal to lease its own chips back from the cloud provider. Lambda currently operates 15 data centers across the United States.
