Lambda Inc., a cloud infrastructure firm backed by Nvidia, is in talks for a funding round that could value the company at $4-$5 billion. The round is expected to be in the hundreds of millions of dollars and may precede an IPO later this year. The company has raised over $860 million in funding and has more than 1 million Nvidia GPUs across its data centers.
Lambda Inc., a cloud infrastructure firm backed by Nvidia Corp., is in talks with investors about a funding round that could value the company at $4 billion to $5 billion. According to sources familiar with the matter, the funding round is expected to be in the hundreds of millions of dollars and could precede an initial public offering (IPO) later this year [1].
The California-based company has had preliminary discussions with bankers to potentially lead the IPO, with the funding round likely to be in the hundreds of millions of dollars. The new financing would come just months after Lambda's Series D round in February, which brought in $480 million at a $2.5 billion valuation [2].
Lambda Inc. has more than 1 million Nvidia graphics processing units (GPUs) across data centers in cities including Atlanta, Los Angeles, Chicago, and Austin. The company's February funding round was raised to fuel the expansion of its Lambda Cloud Platform. The company has raised more than $860 million in funding to date [2].
Founded in 2012, Lambda Inc. has attracted significant interest from investors, including Andra Capital, SGW (the family office of early Google investor Scott Hassan), OpenAI co-founder Andrej Karpathy, Cathie Wood’s ARK Invest, and Nvidia, among others. The company's success in securing substantial funding highlights the growing demand for cloud-computing infrastructure and AI technologies [2].
Deliberations are ongoing, and details of both the funding round and the IPO may change. However, the potential for Lambda Inc. to go public later this year could build on the enthusiasm that has powered CoreWeave Inc.'s shares to more than double from a late March debut [2].
References:
[1] https://news.bloomberglaw.com/business-and-practice/nvidia-backed-lambda-eyes-funding-at-over-4-billion-valuation
[2] https://www.bloomberg.com/news/articles/2025-08-14/nvidia-backed-lambda-eyes-funding-at-over-4-billion-valuation
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