Lambda, an AI cloud company that buys computing chips and rents them out to businesses, has raised $1 billion in private, short-dated debt to buy Nvidia’s AI chips that it will lease to Microsoft, Bloomberg reports . This is the latest in a string of loans that Lambda is using to fund GPU infrastructure for specific customers.

In May, it closed a $1 billion secured credit facility, and this week it confirmed the closing of a $926 million loan to fund Nvidia GB300 GPUs, one of Nvidia’s newest chip models, for a deployment it’s under contract to provide Nvidia. The $1 billion private debt deal comes as Lambda is reportedly in talks for a $3 billion pre-IPO round .

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Core Findings and Detailed Timeline

The company last November raised $1.5 billion in venture capital at a $5.43 billion post-money valuation, per PitchBook data. Lambda isn’t the only one relying on debt to fund the AI boom — according to data Bloomberg compiled, banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far. Don’t miss out .

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Broader Implications and Future Outlook

Lambda, an AI cloud company that buys computing chips and rents them out to businesses, has raised $1 billion in private, short-dated debt to buy Nvidia’s AI chips that it will lease to Microsoft, Bloomberg reports .

This is the latest in a string of loans that Lambda is using to fund GPU infrastructure for specific customers. In May, it closed a $1 billion secured credit facility, and this week it confirmed the closing of a $926 million loan to fund Nvidia GB300 GPUs, one of Nvidia’s newest chip models, for a deployment it’s under contract to provide Nvidia.

The $1 billion private debt deal comes as Lambda is reportedly in talks for a $3 billion pre-IPO round . The company last November raised $1.5 billion in venture capital at a $5.43 billion post-money valuation, per PitchBook data.