Lambda Secures Major Funding Round Led by TWG Global
AI data center provider Lambda raised $1.5 billion in new financing led by TWG Global, a $40 billion investment firm created by Thomas Tull, former owner of Legendary Entertainment, and Guggenheim Partners founder and CEO Mark Walter. TWG manages a wide range of the pair’s assets, including Walter’s stakes in the Los Angeles Lakers and the Cadillac F1 racing team. The firm also operates a $15 billion AI-focused fund anchored by Abu Dhabi’s Mubadala Capital and previously backed a partnership between Musk’s xAI and Palantir to supply AI agents to enterprises.
Funding Follows Lambda’s Large-Scale Infrastructure Deal With Microsoft
The new investment arrives shortly after Lambda announced a multibillion-dollar agreement to provide Microsoft with AI infrastructure powered by tens of thousands of Nvidia GPUs. Nvidia is also an investor in Lambda. Lambda operates AI data centers across the United States and competes with CoreWeave, while also selling its “AI factories” to hyperscale cloud providers.
Microsoft and OpenAI Deals Highlight Intensifying Demand for AI Compute
Microsoft previously signed a substantial deal with CoreWeave and purchased about $1 billion worth of services from the company in 2024, making it CoreWeave’s largest customer. OpenAI then signed a $12 billion agreement with CoreWeave in March, intensifying competition for high-end compute capacity.
New Round Exceeds Earlier Rumors About Lambda’s Fundraising Plans
Deal watchers had been reporting for months that Lambda was seeking to raise several hundred million dollars at a valuation above $4 billion, with some speculation about a potential IPO. Before this round, Lambda raised a $480 million Series D in February at an estimated $2.5 billion valuation, according to PitchBook. The $1.5 billion investment significantly exceeds earlier expectations. Lambda declined to disclose whether its valuation increased as part of the new round.
Featured image credits: Freepik
For more stories like it, click the +Follow button at the top of this page to follow us.