AI cloud provider Lambda has closed a $1.008 billion investment-grade delayed draw term loan, marketed to insurance companies and fixed income investors, to fund GPU infrastructure for three committed customer deployments with two investment-grade offtakers across multiple data centers.
The oversubscribed facility is Lambda’s first U.S. fixed-rate financing and its first institutional debt deal above $1 billion. It received an A (low) rating from Morningstar DBRS and a Baa1 rating from Moody’s, and was priced at a 6.78% fixed interest rate with semi-annual coupons, within the target range. The loan matures on May 30, 2033, fully amortizes and is secured by the funded GPU servers, related infrastructure and contracted cash flows.
The deal follows Lambda’s broadly syndicated loan closed on August 27, 2026, with each of its major financings this year raising around $1 billion.
CEO Michel Combes said the capital underwrites infrastructure over decades rather than quarters and has funded Lambda as a private company based on the strength of its customer contracts. He added that this is the third new credit market the company has opened in 18 months, reflecting confidence in its contracts and scalability.
J.P. Morgan served as sole coordinating lead arranger, structuring agent and bookrunner. Founded in 2012, Lambda builds supercomputers for AI training and inference for tens of thousands of customers.
