Lambda, which offers a cloud GPU service powered by NVIDIA, secured a special purpose financing vehicle of up to $500 million to fund the expansion of its on-demand cloud offering.
The special asset-based loan is secured by the GPUs and supported by their cash flow generation.
The financing was led by Macquarie Group with participation from Industrial Development Funding, and follows Lambda’s $320 million Series C funding round in February 2024.
“This first-of-its-kind financing vehicle unlocks a new way to fund the deployment of tens of thousands of NVIDIA GPUs,” said Mitesh Agrawal, Lambda COO. “Lambda’s mission is to continue to build the best AI compute platform in the world, and this structure lets our AI startup customers build the next generation of iconic companies on top of our cloud without the barrier of expensive multi-year contracts.”
The company cites explosive demand for its Lambda Cloud, which has more than 100,000 customer sign-ups. This financing supports NVIDIA GPU deployments for AI developers training, fine-tuning, and inferencing generative AI models in Lambda Cloud. Lambda also supports NVIDIA AI Enterprise to deliver a complete stack for generative AI developers.
“As demand for computing picks up pace alongside the widespread integration of LLMs and generative AI, we’re happy to support Lambda as they deliver what AI engineers need,” said Don Trent, Senior Managing Director in Macquarie Group’s Commodities and Global Markets business. “We’re proud to partner with Lambda on such a pioneering effort and support the buildout of GPU cloud infrastructure that will transform industries and businesses alike.”
