Lambda, an AI cloud company that purchases computing chips and leases them to businesses, has secured $1 billion in private, short-term debt to acquire Nvidia's AI chips, which it will then lease to Microsoft, according to a Bloomberg report.
The terms of the deal, arranged by JP Morgan Chase, signal that Lambda is betting on rapid deployment of the chips to generate revenue quickly, allowing it to repay the debt with incoming cash flow.
This is the latest in a series of loans Lambda has used to fund GPU infrastructure for specific customers. In May, it closed a $1 billion secured credit facility, and this week it announced the closing of a $926 million loan to fund Nvidia GB300 GPUs—one of Nvidia's newest chip models—for a deployment it's contracted to provide to Nvidia itself.
The $1 billion private debt deal comes as Lambda is reportedly in talks for a $3 billion pre-IPO round. Last November, the company raised $1.5 billion in venture capital at a $5.43 billion post-money valuation, per PitchBook data.
Lambda isn't alone in relying on debt to fuel the AI boom. According to data compiled by Bloomberg, banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far, reflecting a broader trend of leveraging financing to scale AI infrastructure.
via TechCrunch AI