You are currently viewing Lambda Secures $1.5 Billion Funding to Accelerate Expansion of AI Data Centers

Lambda Secures $1.5 Billion Funding to Accelerate Expansion of AI Data Centers

Prime Highlight

  1. Lambda has raised a massive $1.5 billion funding round led by TWG Global, marking one of the largest AI infrastructure investments this year.
  2. This funding positions Lambda to rapidly scale its AI data centers and compete more aggressively with major rival CoreWeave.

Key Facts

  1. TWG Global, managing $40 billion in assets and backed by Thomas Tull and Mark Walter, led the round, further expanding its footprint in the AI investment sector.
  2. Lambda recently signed a multibillion-dollar deal with Microsoft to provide AI infrastructure powered by tens of thousands of Nvidia GPUs, with Nvidia also investing in the company.

Background

AI data center provider Lambda has raised a massive $1.5 billion in new funding, the company announced on Tuesday. The round was led by TWG Global, a fast-growing investment firm backed by billionaires Thomas Tull and Mark Walter. The investment marks one of the largest capital raises in the AI infrastructure sector this year and follows Lambda’s recent multibillion-dollar deal with Microsoft.

TWG Global, which manages about $40 billion in assets, has been expanding its presence in the AI industry. The firm also runs a $15 billion AI investment fund anchored by Abu Dhabi’s Mubadala Capital. Its portfolio includes partnerships with Elon Musk’s xAI and Palantir to deliver AI agents to businesses. With the latest funding, TWG strengthens its bet on AI compute providers as demand for high-performance infrastructure soars.

Lambda operates several AI data centers across the U.S. and competes directly with CoreWeave, another major player in the sector. The company also sells its “AI factories” to hyperscale cloud providers. Earlier this month, Lambda signed a major deal to supply Microsoft with AI infrastructure powered by tens of thousands of Nvidia GPUs. Nvidia itself is also an investor in the company.

The new funding round far exceeds earlier reports that Lambda was seeking a few hundred million dollars at a valuation above $4 billion. While speculation around an IPO had been growing in recent months, the company has not confirmed whether the latest raise changes its valuation. Lambda previously secured a $480 million Series D round in February at an estimated $2.5 billion valuation, according to PitchBook.

As AI compute demand grows in many industries, Lambda can use its new funding to grow quickly and compete harder in the fast-growing AI data center market.

Read Also : Bank of America Targets Major Growth in Booming U.S. Wealth Market