Lambda, a California-based AI cloud computing provider backed by Nvidia, was in talks to raise up to US$3 billion at a valuation of US$12 billion or more, according to people familiar with the matter.

They said the round could help pave the way for an initial public offering as soon as next year.

People familiar with the matter said Lambda had received multiple term sheets, but the terms were not final.

Some said the company was expected to generate more than US$1.5 billion in revenue this year.

Lambda said it raised more than US$1.5 billion in a series E funding round announced on November 18, 2025, from TWG Global and USIT.

Other backers have included Nvidia, Andra Capital, SGW, OpenAI co-founder Andrej Karpathy, and ARK Invest.

Lambda has also announced a multibillion-dollar agreement with Microsoft to deploy AI infrastructure powered by tens of thousands of Nvidia graphics processing units.

The fundraising talks came as other AI infrastructure companies also attracted large investments, including Crusoe, which raised US$1.375 billion at a US$10 billion valuation.

🔗 Source: Bloomberg

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