Lambda is in talks to raise up to $3 billion at a valuation of $12 billion or more, Bloomberg reported, citing sources. The company has already received several term sheets, final terms have not been agreed upon, and the round itself is preparing to go public next year.
In the fall, Lambda signed a multibillion-dollar agreement with Microsoft for tens of thousands of NVIDIA accelerators, including GB300 NVL72 systems, and two weeks later closed its Series E round for $1.5 billion, led by TWG Global. The company has raised a total of $2.3 billion, with revenue for the current year expected to exceed $1.5 billion.
Lambda has been preparing for its public status since the spring. In May, Michel Combes, who previously led Sprint, Alcatel-Lucent, and SoftBank International, became CEO of the company; John Donovan from AT&T joined the board of directors, and co-founder Stephen Balaban moved to the CTO position.
Lambda has one key counterparty. NVIDIA invested in the company, supplies it with chips, and leases 18,000 servers for approximately $1.5 billion, remaining its largest client. In August, Lambda borrowed $917 million against this contract, secured by GPUs, with Morgan Stanley arranging the loan.
For us, Lambda remains one of the platform's best investments: it has delivered returns of up to 25x since the first of our two investments.
We are anticipating an IPO with our investors.