Lambda Raises $1B Debt to Buy NVIDIA AI Chips

According to people familiar with the matter, AI cloud computing provider Lambda, backed by NVIDIA, has raised approximately $1 billion through a short-term private debt deal to finance the purchase of computing chips for its partnership with Microsoft.

JPMorgan Chase arranged the transaction, which was marketed to private investors, according to the sources. The financing will be used to purchase NVIDIA graphics processing units (GPUs), which Microsoft will lease as part of its AI infrastructure operations.

Lambda reached an agreement with Microsoft in 2025 to deploy AI infrastructure powered by tens of thousands of NVIDIA GPUs. Earlier this month, the company completed a $926 million loan to finance the purchase and installation of GPUs and other supporting infrastructure.

As a so-called “neocloud” company, Lambda provides access to computing chips and other AI infrastructure through leasing services. The company is also in talks to raise as much as $3 billion in a new funding round, a move that could help position it for a potential initial public offering (IPO) as early as next year.

The financing highlights how Wall Street banks and technology companies are increasingly turning to capital markets to fund the rapid expansion of AI infrastructure. According to compiled industry data, global debt financing for AI infrastructure is expected to exceed $400 billion in 2026 alone.