Lambda, a cloud computing firm that specializes in artificial intelligence, has secured $1 billion through private, short-term debt to acquire Nvidia’s AI chips, which it will lease to Microsoft, according to reports.
The arrangement, reportedly facilitated by JP Morgan Chase, indicates that Lambda is confident in its ability to quickly integrate the chips and start earning revenue, which would enable it to repay the debt in a timely manner through generated cash flow.
This financing marks the latest effort by Lambda to bolster its GPU infrastructure for select clients. Previously in May, the company finalized a $1 billion secured credit line and recently announced the acquisition of $926 million in loans aimed at supporting Nvidia GB300 GPUs, one of Nvidia’s latest models, under an existing contract.
The $1 billion debt arrangement arrives as Lambda is reportedly engaged in discussions for a $3 billion funding round ahead of a potential IPO. Last November, the firm raised $1.5 billion in venture capital, achieving a post-money valuation of $5.43 billion, according to PitchBook data.
Lambda is not alone in leveraging debt for growth in the AI sector; as per data compiled, banks and technology firms have amassed over $400 billion in AI-linked debt globally so far in 2026.
