Lambda, an AI cloud provider that leases computing chips to businesses, has arranged $1 billion in private short-dated debt to buy Nvidia AI chips for Microsoft. The financing, arranged by JP Morgan Chase, aims to let Lambda deploy the chips quickly and repay the debt using revenue from Microsoft’s lease agreements.
This follows Lambda’s recent pattern of using debt to fund GPU infrastructure for specific customers. In May, the company secured a $1 billion credit facility, and this week closed a $926 million loan to purchase Nvidia GB300 GPUs for a deployment tied to Nvidia itself. Lambda is also reportedly in talks for a $3 billion pre-IPO funding round after raising $1.5 billion in venture capital last November at a $5.43 billion valuation.
The move reflects broader industry reliance on debt to fuel AI expansion, with banks and tech firms securing over $400 billion in AI-related loans globally in 2026.
