AI computing startup Lambda to raise $4B ahead of planned IPO

Lambda, an AI computing and cloud provider backed by Nvidia, is raising up to $4 billion at a $14.5 billion pre-money valuation, according to The Wall Street Journal. Coatue Management and Blackstone are leading the round, which could be Lambda's final private raise before a planned 2027 IPO.

The Journal reported that a letter to investors showed Lambda's backlog grew from $15 billion in June to $50 billion in September. Much of that increase appears driven by a $35 billion commitment from one company, Anthropic, which signed a deal with Lambda in late August. The report notes Lambda's valuation could lean heavily on Anthropic's ability to keep paying.

The company raised an additional $1 billion last week. The report describes data center buildouts as largely funded by debt, with lenders becoming more selective about whom they offer cash to and under what circumstances. Lambda's decision to raise more now sets the tone for its IPO pricing and gives it access to capital before public market scrutiny.

The company was reportedly meant to debut this year but pushed the IPO back amid market uncertainty. If it lists, Lambda would join other Nvidia-backed neoclouds, including CoreWeave and Nebius, that depend on their stock to fund data center buildouts. British neocloud Nscale filed for an IPO last month and is expected to begin trading soon. Lambda, Coatue, and Blackstone did not immediately respond to a request for comment.