AI cloud firm Lambda raises $1B in debt to buy more Nvidia chips
AI cloud company Lambda has secured $1 billion in short-dated private debt to purchase Nvidia AI chips it plans to lease to Microsoft, its latest loan aimed at funding GPU infrastructure.
Lambda, an AI cloud company that buys computing chips and rents them out to businesses, has raised $1 billion in private, short-dated debt to purchase Nvidia AI chips, according to a Bloomberg report. The company plans to lease the chips to Microsoft.
Bloomberg reports the deal was arranged by JP Morgan Chase. The terms suggest Lambda expects to deploy the chips quickly and begin generating revenue from them soon enough to repay the debt on a fast timeline.
Part of a broader borrowing pattern
This marks the latest in a series of loans Lambda has taken on to fund GPU infrastructure for specific customers. In May, the company closed a $1 billion secured credit facility. This week, it announced closing a $926 million loan to fund Nvidia GB300 GPUs — one of Nvidia's newest chip models — for a deployment Lambda is contractually obligated to provide to Nvidia itself.
The new $1 billion private debt deal comes as Lambda is reportedly in discussions for a $3 billion pre-IPO funding round. Last November, the company raised $1.5 billion in venture capital at a $5.43 billion post-money valuation, according to PitchBook data.
Lambda is not alone in turning to debt to finance AI expansion. Bloomberg-compiled data shows banks and technology companies have raised more than $400 billion in AI-related debt globally so far in 2026.
