Lambda raises $1 billion in short-term debt to purchase Nvidia AI chips
AI-cloud provider Lambda secured a $1 billion private debt facility to buy Nvidia GPUs that it will lease to Microsoft and other clients.
Lambda, a cloud platform that purchases and rents out AI computing hardware, closed a $1 billion private, short-term debt agreement arranged by JP Morgan Chase. The proceeds will be used to buy Nvidia’s newest AI chips, which Lambda plans to lease to Microsoft and other customers, aiming to generate cash flow fast enough to service the loan. This financing adds to a series of recent borrowings, including a $1 billion secured credit facility secured in May and a $926 million loan to fund Nvidia GB300 GPUs for a contract with Nvidia itself.
Sources say Lambda is also in talks for a $3 billion pre-IPO round after raising $1.5 billion in venture capital last November at a $5.43 billion valuation. Bloomberg’s data show that banks and technology firms have collectively raised over $400 billion in AI-related debt worldwide so far in 2026.
Why it matters
The funding enables Lambda to expand AI chip leasing, highlighting the growing reliance on debt to fuel the AI infrastructure boom.
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