TLDRs:
- Lambda targets $4–$5B valuation, preparing for potential IPO by late 2025.
- Nvidia-backed startup operates over 1 million GPUs across US data centers.
- AI infrastructure investment boom drives Lambda’s rapid valuation growth.
- Surge in AI workloads heightens demand for cloud computing services.
Lambda, a California-based cloud infrastructure firm supported by Nvidia, is advancing discussions for a new funding round that could value the company between US$4 billion and US$5 billion, according to sources familiar with the matter.
The company is also exploring a public listing, with preliminary IPO talks potentially setting the stage for a late-2025 debut.
1M+ GPUs deployed
The startup aims to raise several hundred million dollars in the upcoming funding round, following its February 2025 raise of US$480 million at a US$2.5 billion valuation.
That round was led by Andra Capital and SGW, with participation from notable investors including Nvidia, ARK Invest, and OpenAI co-founder Andrej Karpathy.
IPO talks underway
Lambda operates over 1 million Nvidia GPUs across multiple data centers in U.S. cities including Atlanta, Los Angeles, Chicago, and Austin.
This extensive GPU infrastructure positions Lambda to meet the growing demand for AI compute services as more companies deploy resource-intensive machine learning workloads. According to the firm, it has raised more than US$860 million to date.
The rapid increase in Lambda’s valuation reflects broader trends in AI infrastructure investment. From the first quarter of 2023 through the first quarter of 2025, U.S. AI startups received approximately US$230 billion of the total $306.5 billion global investment in AI ventures.
This influx of capital underscores the strategic importance of AI and machine learning in venture capital portfolios, with Nvidia actively participating in 49 AI startup funding rounds in 2024 alone, up from 34 in 2023.
AI cloud demand rises
Lambda’s geographic spread and GPU scale give it a competitive advantage in the cloud market. Large-scale capital expenditure is increasingly recognized as a key differentiator for cloud providers, enabling lower latency, higher computational capacity, and improved service reliability for AI workloads.
Analysts note that infrastructure-heavy strategies often correlate with market leadership, mirroring approaches used by established cloud giants.
As companies globally earmark approximately US$325 billion for AI investment, demand for specialized cloud infrastructure continues to surge. Lambda’s current positioning, backed by Nvidia and other strategic investors, allows it to capitalize on this market momentum. While the funding and IPO discussions remain in flux, the company’s trajectory highlights the rising value of AI-focused cloud providers in a rapidly evolving tech landscape.
Lambda’s combination of robust GPU infrastructure, strategic funding, and imminent public offering ambitions underscores a pivotal moment in AI cloud computing, signaling a broader shift in how enterprises invest in and leverage next-generation AI technologies.