Lambda Raises $1 Billion Debt for NVIDIA GPUs Leased by Microsoft

Lambda has raised about $1 billion in private short dated debt to buy NVIDIA GPUs that will be leased by Microsoft Corporation, according to Bloomberg. JPMorgan Chase arranged the transaction and marketed the debt to private placement investors.

The financing will fund graphics processing units tied to Lambda's collaboration with Microsoft. Lambda agreed last year to deploy AI infrastructure powered by tens of thousands of NVIDIA GPUs for Microsoft.

The deal follows a separate $926 million loan completed earlier this month to fund GPUs and other infrastructure. Lambda is also in talks to raise as much as $3 billion in a round that could precede a public listing next year.