Lambda, the Nvidia-backed AI cloud provider, is in talks to raise up to $3 billion in a pre-IPO funding round at a valuation exceeding $12 billion, according to Bloomberg1,2.
The company's revenue this year is estimated to reach more than $1.5 billion. Lambda is described as a "neocloud" — a category of cloud infrastructure providers built specifically around GPU compute for AI workloads.
Nvidia is identified as a backer of Lambda. The round is characterized as a pre-IPO raise.
ANALYSIS The pre-IPO framing suggests Lambda is positioning for a public listing, with a round of this size likely intended to scale capacity ahead of that event. Nvidia's backing underscores the tight coupling between GPU suppliers and the neocloud providers that purchase their hardware at scale to resell as cloud compute.