According to a Bloomberg report, Lambda, an AI cloud provider specializing in acquiring and renting out computing chips, has secured $1 billion through private, short-term debt. This funding is earmarked for purchasing Nvidia’s AI chips, which will then be leased to Microsoft.
The arrangement, reportedly facilitated by JP Morgan Chase, suggests Lambda’s confidence in rapidly deploying these chips and generating revenue, enabling swift repayment of the debt with the anticipated earnings.
This transaction represents the most recent in a series of financing efforts by Lambda aimed at bolstering GPU infrastructure for particular clients. Earlier in May, the company finalized a $1 billion secured credit facility, and just this week, it revealed the completion of a $926 million loan specifically for Nvidia GB300 GPUs—among Nvidia’s newest chip designs—to fulfill a contractual obligation with Nvidia.
This $1 billion private debt arrangement coincides with reports that Lambda is currently negotiating a $3 billion pre-IPO funding round. Furthermore, PitchBook data indicates that the company previously secured $1.5 billion in venture capital last November, achieving a post-money valuation of $5.43 billion.
Lambda’s approach of leveraging debt to fuel the expansion of AI is not unique; Bloomberg’s compiled data reveals that banks and technology firms worldwide have collectively secured more than $400 billion in AI-related debt during 2026 to date.