Lambda raises $1B debt to buy Nvidia chips for Microsoft
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- Lambda raised $1 billion in short-dated private debt, arranged by JPMorgan Chase per Bloomberg, to purchase Nvidia AI chips that it will lease to Microsoft.
- The deal terms signal Lambda is betting on rapid chip deployment to start generating lease revenue and repay the debt quickly, per Bloomberg.
- Lambda closed a separate $1 billion secured credit facility in May and announced a $926 million loan this week to fund Nvidia GB300 GPUs, one of Nvidia's newest chip models.
- Lambda is reportedly in talks for a $3 billion pre-IPO round, after raising $1.5 billion in venture capital at a $5.43 billion post-money valuation last November per PitchBook.
- Banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far, according to Bloomberg data compiled in the article.
Why it matters: Lambda's three recent debt vehicles — the $1 billion private deal, $1 billion secured facility, and $926 million GB300 loan — now exceed $2.9 billion in leveraged chip purchases, with this tranche specifically contracted to lease to Microsoft. The short-dated structure means Lambda needs chip revenue to start flowing before its hoped-for IPO window, tying its exit directly to Nvidia chip deployment speed.
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