Lambda, an AI cloud company that leases computing chips to businesses, has raised $1 billion in private, short-dated debt to purchase Nvidia AI chips that it will lease to Microsoft, according to Bloomberg. The deal, arranged by JP Morgan Chase, reflects Lambda’s expectation that it can rapidly deploy the chips and generate revenue quickly enough to repay the debt.
The financing adds to a series of recent loans Lambda has used to fund GPU infrastructure for specific customers. In May, the company closed a $1 billion secured credit facility, and this week it finalized a separate $926 million loan to fund Nvidia GB300 GPUs, one of Nvidia’s newest chip models, under a contract to supply the chips to Nvidia itself.
The latest debt round comes as Lambda is reportedly in discussions for a $3 billion pre-IPO funding round. The company previously raised $1.5 billion in venture capital last November at a $5.43 billion post-money valuation, according to PitchBook data.
Lambda’s reliance on debt reflects a broader industry trend, as banks and technology companies have raised more than $400 billion in AI-related debt globally so far in 2026, according to data compiled by Bloomberg.
