AI computing startup Lambda to raise $4B ahead of planned IPO

Nvidia-backed AI infrastructure company Lambda is reportedly preparing to raise up to $4 billion in a new funding round. The deal, which is being led by investment firms Coatue and Blackstone, values the startup at $14.5 billion on a pre-money basis. This significant capital injection is intended to bolster Lambda's computing resources and market position as the company prepares for a planned initial public offering (IPO) in 2027. Lambda specializes in providing GPU cloud services, which have become increasingly critical due to the surging demand for high-performance computing power required to train and deploy large-scale artificial intelligence models. By securing this funding, the company aims to scale its infrastructure to better compete with major cloud providers and meet the growing needs of AI developers globally. The move highlights the continued investor appetite for foundational AI infrastructure providers.