AI data center provider Lambda raises whopping $1.5B after multibillion-dollar Microsoft deal
AI data center provider Lambda announced Tuesday that it has raised $1.5 billion in a round led by TWG Global relatively new $40 billion investment company formed by billionaire Thomas Tull, the former owner of Legendary Entertainment, and Guggenheim Partners founder and CEO Mark Walter.
TWG owns several of the billionaires’ assets, including Walter’s stakes in the Los Angeles Lakers and the new Cadillac F1 racing team. The company also has a $15 billion fund to invest in AI The Mubadala capital of Abu Dhabi. TWG previously invested in a partnership with Elon Musk’s xAI and Palantir will sell AI agents to companies.
Now it is backing Lambda, which operates a number of US AI data centers. Lambda is a competitor to CoreWeave, although it also sells its “AI factories” to hyperscaler clouds. Earlier this month, Lambda announced a multibillion-dollar deal to provide Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs. (Nvidia is also investing in Lambda.)
Recall that Microsoft had a similar deal with CoreWeave, buying about $1 billion worth of services from the company in 2024, by far its largest customer last year. Then OpenAI stepped in and signed a $12 billion deal with CoreWeave in March.
Meanwhile, deal watchers have been talking for months about Lambda looking to raise hundreds of millions of dollars at a valuation of over $4 billion. There was also talk of an IPO. Prior to this, Lambda raised a $480 million Series D in February, with an estimated valuation of $2.5 billion, according to PitchBook.
Lambda’s $1.5 billion raise far exceeds previous rumors about what it was looking for. We cannot confirm whether the valuation has also increased dramatically and Lambda declined to comment on that.
