lambda inks multibillion-dollar ai infrastructure deal with microsoft

Lambda and Microsoft Expand AI Infrastructure Partnership

Lambda, a prominent cloud-computing provider, has significantly strengthened its collaboration with Microsoft through a substantial agreement focused on AI infrastructure.

Multibillion-Dollar GPU Deployment

The Nvidia-supported Lambda revealed on Monday the execution of a deal valued in the billions of dollars with Microsoft. This agreement involves the deployment of tens of thousands of Nvidia GPUs, as detailed in a company press release.

The precise financial terms of the deal remain undisclosed. Included within this deployment will be Nvidia GB300 NVL72 systems, which were unveiled earlier in the year and have recently begun distribution.

Executive Commentary

“Observing the collaborative efforts of the Microsoft and Lambda teams in deploying these extensive AI supercomputers is truly rewarding,” stated Stephen Balaban, CEO of Lambda, within the press release. “Our partnership with Microsoft spans over eight years, and this represents a remarkable advancement in our ongoing relationship.”

Microsoft’s initial GB300 NVL72 cluster was brought online in October.

Growing Demand for AI Infrastructure

Founded in 2012, prior to the current surge in AI development, Lambda has secured $1.7 billion in venture funding. The company is currently experiencing heightened demand as organizations actively acquire AI infrastructure and computational resources.

Recent AI Infrastructure Investments

This announcement follows closely on the heels of Microsoft’s declaration of a $9.7 billion agreement with IREN, an Australian data center company, for AI cloud capacity.

Furthermore, OpenAI announced earlier today a $38 billion cloud computing deal with Amazon, committing to purchase cloud services over the next seven years. Allegedly, a $300 billion agreement with Oracle for cloud compute was also finalized in September.

Amazon Web Services (AWS) Performance

AWS has indicated it is poised for its most profitable year in three years, as reported in its third-quarter earnings. To date, this Amazon division has generated $33 billion in sales this year.

“AWS is demonstrating growth rates not seen since 2022, with a year-over-year increase of 20.2%,” noted Andy Jassy, President and CEO of Amazon, during the earnings announcement. “Continued strong demand for AI and core infrastructure is driving this growth, and we are actively expanding capacity – adding over 3.8 gigawatts in the last year.”

Further Information

TechCrunch contacted Lambda to request additional details concerning the deal’s structure and overall size.