Lambda Secures .5 B Funding After Multi‑Billion Microsoft AI Deal

Lambda Secures $1.5 B Funding After Multi‑Billion Microsoft AI Deal

Key Points

  • Lambda raised $1.5 billion in a financing round led by TWG Global.
  • TWG Global was founded by Thomas Tull and Mark Walter.
  • The funding follows a multibillion‑dollar AI infrastructure deal with Microsoft.
  • Lambda will deploy tens of thousands of Nvidia GPUs for the Microsoft contract.
  • The company competes directly with CoreWeave in the AI data‑center market.
  • Lambda offers “AI factories” to hyperscaler clouds as part of its service portfolio.
  • The new raise far exceeds Lambda’s prior $480 million Series D round.
  • Lambda declined to comment on its current valuation.

AI data center provider Lambda raises whopping $1.5B after multi-billion Microsoft deal

Funding Round Highlights

Lambda, a U.S.‑based AI data‑center operator, disclosed a $1.5 billion financing round headed by TWG Global. TWG Global is a newly formed investment platform created by billionaire Thomas Tull, former owner of Legendary Entertainment, and Mark Walter, founder and CEO of Guggenheim Partners. The firm holds a variety of assets, including stakes in the Los Angeles Lakers and a Cadillac F1 racing team, and manages a $15 billion fund focused on AI investments.

The $1.5 billion infusion dwarfs Lambda’s earlier $480 million Series D raise, which was reported to value the company at roughly $2.5 billion. Lambda declined to comment on any change in valuation resulting from the latest round.

Strategic Partnerships and Market Position

Lambda’s recent financing aligns with a multibillion‑dollar agreement to provide Microsoft with AI infrastructure. Under the deal, Lambda will deploy tens of thousands of Nvidia GPUs to support Microsoft’s AI workloads, reinforcing the company’s role as a key supplier to hyperscale cloud providers.

The partnership mirrors earlier collaborations between Microsoft and CoreWeave, another AI‑focused data‑center provider. CoreWeave has also secured a $12 billion contract with OpenAI, highlighting the competitive landscape in which Lambda operates.

Beyond the Microsoft contract, Lambda markets its “AI factories” to other hyperscaler clouds, positioning itself as a direct competitor to CoreWeave while offering a broader suite of AI‑ready infrastructure services.

Investor Profile and Future Outlook

TWG Global’s involvement brings not only capital but also strategic connections across technology, entertainment, and sports. The firm’s broader AI fund, backed by Abu Dhabi’s Mubadala Capital, underscores a growing appetite for investments that bridge high‑performance computing and generative AI applications.

Industry observers note that Lambda’s sizable raise could set the stage for additional growth initiatives, potential public‑market activity, or further large‑scale contracts with leading cloud providers.

Source: techcrunch.com