Lambda, a US-based company that rents access to computing chips and other AI infrastructure, has raised about US$1 billion in short-dated private debt, according to people with knowledge of the matter.

JP Morgan Chase & Co. arranged the deal, which was marketed to private placement investors, to finance Nvidia graphics processing units, or GPUs, that Microsoft will lease, the people said.

The financing is tied to Lambda’s agreement with Microsoft last year to deploy AI infrastructure powered by tens of thousands of Nvidia GPUs.

It follows a separate US$926 million senior secured term loan B facility completed earlier this month to fund the purchase and installation of GPUs and other infrastructure.

The deal comes as companies and banks race to fund AI infrastructure. Lambda is in talks to raise as much as US$3 billion in a funding round that could position it to go public next year.

🔗 Source: Bloomberg

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