Nvidia-backed Lambda raises $1 billion in private debt for Microsoft chip deal

Lambda, an AI cloud-computing provider backed by Nvidia, has raised about $1 billion in short-dated private debt to finance graphics-processing units tied to its collaboration with Microsoft, Bloomberg reported.

JPMorgan arranged the transaction, which was marketed to private-placement investors, according to people familiar with the matter. The debt will fund Nvidia GPUs that Lambda will lease to Microsoft.

Lambda agreed last year to deploy AI infrastructure powered by tens of thousands of Nvidia GPUs for Microsoft. The new financing follows a separate $926 million loan completed earlier this month for GPU purchases and installation.

Lambda rents access to computing chips and AI infrastructure. Bloomberg reported that the company is also discussing a funding round of as much as $3 billion that could support a public listing next year.

Technology companies and banks have raised more than $400 billion of debt globally in 2026 to fund AI infrastructure, according to Bloomberg-compiled data.