Lambda is weighing its largest funding round yet, with talks to raise up to $3B at a valuation of $12B or higher, Bloomberg reported, citing people familiar with the discussions. The Nvidia-backed GPU cloud provider has already received multiple term sheets, though negotiations remain fluid and final terms could shift.
If the round closes, it would position the company for an IPO as soon as 2027. Lambda expects to generate more than $1.5B in revenue this year, a sign of how quickly demand for rented GPU capacity is turning into sales across the neocloud sector.
Founded in 2012 by twin brothers Stephen and Michael Balaban in San Jose, Lambda rents out the accelerator-heavy infrastructure AI labs need to train and run models without building their own data centers. Its most recent raise came in November 2025, when it collected more than $1.5B led by TWG Global, with Nvidia, ARK Invest and OpenAI co-founder Andrej Karpathy among the backers. That followed a $480M Series D in February 2025 that valued the company near $2.5B, meaning a $12B mark would roughly quintuple its worth in under two years.
Lambda is racing the same limited pool of chips, power and customers as CoreWeave, Crusoe and Nscale, all of which are scaling fast or heading toward public markets. Public listings bring their own scrutiny, particularly around how quickly GPU fleets are written down, an accounting question with no settled industry convention yet.
