Lambda Secures $1 Billion Debt for Nvidia Chips to Lease to Microsoft
Updated
Updated · TechCrunch · Aug 28
Lambda Secures $1 Billion Debt for Nvidia Chips to Lease to Microsoft
3 articles · Updated · TechCrunch · Aug 28
Summary
$1 billion in short-dated private debt will let Lambda buy Nvidia AI chips for Microsoft, extending its strategy of financing customer-specific GPU deployments with borrowing.
JP Morgan Chase arranged the deal, whose short tenor signals Lambda expects to deploy the chips quickly and repay the debt from lease revenue.
Lambda has stacked up similar financings this year, including a $1 billion secured credit facility in May and a $926 million loan announced this week for Nvidia GB300 GPUs under contract for Nvidia itself.
The borrowing comes as Lambda is reportedly discussing a $3 billion pre-IPO round after raising $1.5 billion last November at a $5.43 billion post-money valuation.
Debt has become a major funding tool across the AI buildout, with more than $400 billion in AI-related debt raised globally in 2026 so far, Bloomberg data show.