According to Bloomberg, AI, a cloud computing company, has secured $1 billion in short-term private debt financing to purchase NVIDIA AI chips and lease the related computing power to Microsoft. The transaction was arranged by JPMorgan Chase, indicating that the company is accelerating the expansion of its AI infrastructure.
Funds are used to purchase NVIDIA chips.
The business model of Lambda is to purchase high-performance computing chips and then rent out the computing power to corporate clients. The newly raised funds will mainly be used to continue purchasing NVIDIA chips in order to meet the needs of large clients for AI training and inference resources.
The report mentions that these chips will subsequently be leased to Microsoft. If the deployment progresses smoothly, Lambda may be able to repay this short-term debt through the rental income that can be generated relatively quickly.
Short-term debt tests deployment speed
This financing is a short-term private debt. Compared to long-term financing, this structure relies more on the rapid deployment of assets to generate cash flow, which also reflects the company's strong expectations regarding the timing of chip delivery, market launch, and leasing.
From the perspective of transaction structure, Lambda believes that the new chips can be deployed relatively quickly and converted into revenue in a short period of time. This is also an important reason for them to choose debt financing rather than relying solely on equity financing.
IPO Pre-financing negotiations are still in progress
In addition to this $1 billion debt, Lambda is currently reported to be in talks for a further round of pre-financing in the amount of $3 billion for IPO. If the deal is completed, the company's capital scale will further expand.
According to PitchBook data, Lambda completed a $1.5 billion venture capital financing in November last year, with a post-investment valuation of $5.43 billion. The continuous advancement of equity and debt financing in such a short period indicates that AI's demand for funds for its computing power expansion remains high.
Data compiled by Bloomberg shows that since 2026, global banks and technology companies have raised over $400 billion in debt funds related to AI. As the demand for chips, data centers, and computing power leasing continues to grow, debt financing is becoming an important tool for the expansion of AI infrastructure.
