AI Data Center Provider Lambda Raises $1.5 Billion in Funding

Artificial intelligence data center supplier Lambda announced on Tuesday the completion of a $1.5 billion funding round led by TWG Global. TWG Global is a relatively new $40 billion investment firm co founded by billionaire and former owner of Legendary Entertainment, Thomas Tull, and Mark Walter, founder and CEO of Guggenheim Partners.

TWG holds various assets of these two billionaires, including Walter’s shares in the Los Angeles Lakers and the new Cadillac F1 racing team. The company also has a $15 billion fund anchored by Mubadala Capital in Abu Dhabi, dedicated to investing in the field of artificial intelligence. TWG has previously collaborated with Elon Musk’s xAI and Palantir to sell AI agents to businesses.

Lambda’s Business and Competitive Landscape

Now, TWG is starting to support Lambda. Lambda operates multiple AI data centers in the United States. It is a competitor to CoreWeave and also sells its “AI factory” to ultra large scale cloud vendors. Earlier this month, Lambda announced a multi billion dollar agreement with Microsoft to provide AI infrastructure using tens of thousands of NVIDIA GPUs. (NVIDIA is also an investor in Lambda.)

It is worth noting that Microsoft had a similar agreement with CoreWeave and purchased services worth approximately $1 billion from the company in 2024, making it far ahead of CoreWeave as its largest customer last year. Subsequently, OpenAI intervened in March and signed a $12 billion agreement with CoreWeave.

Financing process and valuation speculation

Meanwhile, trading observers have been talking for months about Lambda seeking to raise hundreds of millions of dollars at a valuation of over $4 billion. There have also been discussions in the market about its initial public offering (IPO). Prior to this round of financing, according to PitchBook data, Lambda completed a $480 million Series D funding in February, with an estimated valuation of $2.5 billion at the time.

Lambda’s $1.5 billion financing this time far exceeds the previously rumored financing scale it is seeking. As for whether its valuation has also skyrocketed simultaneously, we cannot confirm, and Lambda has declined to comment on this.