Nvidia-backed neocloud Lambda seeks up to $4B at a $14.5B pre-money valuation ahead of a 2027 listing
The Wall Street Journal reported on October 6 that Nvidia-backed AI cloud provider Lambda is raising up to $4B at a $14.5B pre-money valuation, led by Blackstone and Coatue, with backlog rising from $15B in June to $50B in September.
The Wall Street Journal reported on October 6 that Nvidia-backed AI cloud provider Lambda is raising up to $4 billion in what would be its final private round before a planned 2027 IPO. The round values the company at $14.5 billion on a pre-money basis, led by Blackstone and Coatue Management; if the full $4B is raised, the post-money valuation would land near $18.5B and new investors would hold roughly 22 percent of the company.
The article cites a letter to limited partners saying Lambda's AI-compute backlog rose from $15 billion in June to $50 billion in September, with most of the increase coming from a single deal: the $35 billion commitment Anthropic signed with Lambda in late August. Anthropic is the developer of the Claude family of large models. The dynamic highlights how Lambda's valuation leans heavily on Anthropic's ability to keep paying, while also showing that in a market where reliable GPU capacity remains scarce, providers holding large long-term contracts with frontier labs still draw strong investor appetite.
Lambda also raised $1 billion in debt last week to fund data-center expansion. Co-founder Stephen Balaban moved from CEO to CTO in May, with veteran executive Michel Combes taking over as CEO; former AT&T CEO John Donovan joined the board and former Charter executive Charles Fisher was named CFO. Lambda uses only Nvidia chips and racks. Listed neocloud peers CoreWeave and Nebius rose roughly 4 percent and 9.5 percent respectively on the news.