Lambda raises $1B debt for Nvidia AI chips

lambda, an ai cloud company, has secured $1 billion in private, short-dated debt to buy nvidia ai chips that it will lease to microsoft. this deal, arranged by jp morgan chase, reflects lambda's bet on quickly deploying the chips and generating revenue to repay the debt. lambda has been actively using loans to fund gpu infrastructure for specific customers, including a $1 billion secured credit facility in may and a $926 million loan for nvidia gb300 gpus for a deployment with nvidia itself. the company is reportedly in talks for a $3 billion pre-ipo round, following a $1.5 billion venture capital raise at a $5.43 billion valuation last november. the deal is part of a larger trend, with over $400 billion in ai-related debt raised globally in 2026 so far.