Nvidia-Backed Lambda in Talks to Raise Up to $3 Billion Ahead of Possible IPO

Lambda, an AI cloud-computing provider backed by Nvidia, is in talks to raise up to $3 billion in new funding, according to people familiar with the matter, setting the stage for a possible initial public offering.

The discussions are ongoing and the size and timing of any round could still change, the people said. Lambda sells access to Nvidia GPUs through its cloud platform, and it has emerged as one of the more visible players in the crowded AI infrastructure market.

A deal at that scale would give Lambda the capital to expand its data-center footprint and deepen its relationships with corporate customers, while also giving it more breathing room ahead of a potential public listing. Public investors have become increasingly selective about AI-related companies, especially those carrying expensive hardware obligations.

Lambda's close ties to Nvidia have been a competitive advantage, helping the company secure access to some of the industry's most sought-after chips. Nvidia has also backed Lambda as part of its effort to grow an ecosystem of smaller cloud providers beyond the largest hyperscalers. That relationship brings benefits, but it also means Lambda remains sensitive to Nvidia's pricing, supply decisions, and long-term product plans.

If the raise comes together, it would rank among the larger private financings in AI infrastructure this year and add another data point for investors watching the so-called GPU cloud boom. It would also set up Lambda for what is likely to be a closely watched IPO, one that could test whether the market's enthusiasm for AI compute translates into durable public valuations.