Lambda Signs Multi-Billion Dollar AI Deal with Microsoft

Lambda further deepened its partnership with Microsoft through a large-scale artificial intelligence infrastructure agreement.

According to an official press release, Lambda, a company backed by NVIDIA, announced a multi-billion-dollar agreement with Microsoft this Monday, planning to deploy tens of thousands of NVIDIA GPUs. The specific amount of the deal remains undisclosed, with some portions utilizing NVIDIA’s GB300 NVL72 system, which was launched earlier this year and has been shipping over the past few months.

Lambda CEO Stephen Balaban stated in the company press release, “We are delighted to see Microsoft and Lambda teams jointly deploying these large-scale AI supercomputers. Our collaboration with Microsoft has spanned over eight years, marking a significant new step forward in our partnership.”

Industry Background and Development

Microsoft launched its first NVIDIA GB300 NVL72 cluster in October of this year. Enterprises like Lambda are witnessing robust market demand as companies continue to compete for AI infrastructure and computing resources. Founded in 2012—well ahead of the current AI boom—Lambda has raised a total of $1.7 billion in venture capital funding.

Just hours before this statement was released, Microsoft announced a $9.7 billion AI cloud capacity deal with Australian data center company IREN. Earlier today, OpenAI disclosed a $38 billion cloud computing agreement with Amazon, securing cloud services for the next seven years. It is also reported that the AI firm inked a $300 billion cloud computing deal with Oracle in September.

Market Performance and Demand

Amazon Web Services (AWS) reported in its third-quarter earnings statement last week that its operating profit is expected to achieve its best annual performance in three years. This Amazon division has generated $33 billion in sales so far this year.

Amazon CEO and President Andy Jassy stated in the financial report: “AWS is growing at a pace unseen since 2022, with year-over-year growth accelerating to 20.2%. We continue to see strong demand in AI and core infrastructure, and we remain committed to rapid capacity expansion—adding over 3.8 gigawatts of new capacity in the past 12 months.”