Lambda Raises $1.5B After Microsoft Deal - AI Data Center News

Lambda Secures $1.5 Billion Investment for AI Data Centers

Lambda, a provider specializing in AI data centers, revealed on Tuesday that it has successfully secured $1.5 billion in a new funding round.

The investment was spearheaded by TWG Global, a relatively recent $40 billion investment firm.

TWG Global's Background

TWG Global was established by Thomas Tull, previously the owner of Legendary Entertainment, and Mark Walter, the founder and CEO of Guggenheim Partners.

The firm manages a diverse portfolio of assets belonging to these billionaires.

• This includes Mark Walter’s ownership interests in the Los Angeles Lakers.
• It also encompasses his stake in the newly formed Cadillac F1 racing team.

Furthermore, TWG oversees a $15 billion fund dedicated to AI investments, with significant backing from Abu Dhabi’s Mubadala Capital.

Previous Investments by TWG

TWG has demonstrated prior commitment to the AI sector through investments in partnerships involving Elon Musk’s xAI and Palantir.

These collaborations focused on delivering AI agents to enterprise-level clients.

Lambda's Position in the Market

Now, TWG is extending its support to Lambda, which operates several AI data centers across the United States.

Lambda functions as a competitor to CoreWeave, but also distinguishes itself by offering its “AI factories” to major hyperscaler cloud providers.

Earlier in the month, Lambda announced a substantial, multibillion-dollar agreement to provide Microsoft with AI infrastructure.

This infrastructure will utilize tens of thousands of Nvidia GPUs; notably, Nvidia is also an investor in Lambda.

Comparison with CoreWeave

It is worth noting that Microsoft had previously established a similar arrangement with CoreWeave.

In 2024, Microsoft procured approximately $1 billion worth of services from CoreWeave, making it the company’s largest customer.

Subsequently, OpenAI entered into a $12 billion agreement with CoreWeave in March.

Lambda's Fundraising Journey

For several months, industry analysts have discussed Lambda’s potential to raise hundreds of millions of dollars.

Estimates suggested a valuation exceeding $4 billion, with discussions also circulating regarding a potential Initial Public Offering (IPO).

Prior to this latest round, Lambda completed a $480 million Series D funding in February, achieving an estimated valuation of $2.5 billion, as reported by PitchBook.

The current $1.5 billion raise significantly surpasses earlier expectations regarding the funding amount Lambda was seeking.

While the impact on the company’s valuation remains unconfirmed, Lambda has declined to provide comment on this matter.