Lambda, an AI cloud company that purchases and rents out computing chips, has secured $1 billion in private, short-dated debt. This funding is designated for the acquisition of Nvidia AI chips, which the company intends to lease to Microsoft, according to Bloomberg.
The terms of the deal, reportedly arranged by JP Morgan Chase, suggest Lambda's expectation of quickly deploying the chips and generating revenue to repay the debt. This latest financing follows a $1 billion secured credit facility closed in May and a $926 million loan announced this week for Nvidia GB300 GPUs, which are for a deployment under contract with Nvidia itself.
The $1 billion private debt deal comes as Lambda is reportedly in discussions for a $3 billion pre-IPO funding round. The company previously raised $1.5 billion in venture capital last November, achieving a post-money valuation of $5.43 billion, according to PitchBook data.
Globally, banks and tech companies have raised over $400 billion in AI-related debt in 2026 so far, indicating a broader trend of using debt to finance the AI boom.