Lambda, a provider of AI data center infrastructure, announced Tuesday it has raised $1.5 billion in a funding round led by TWG Global. The investment follows Lambda's recent multibillion-dollar agreement to supply Microsoft with AI infrastructure, utilizing tens of thousands of Nvidia Graphics Processing Units (GPUs).
TWG Global, a recently established investment firm reportedly managing $40 billion in assets, anchored the substantial funding. The firm was formed by billionaires Thomas Tull, former owner of Legendary Entertainment, and Mark Walter, co-founder and CEO of Guggenheim Partners. TWG Global's portfolio includes Walter's stakes in the Los Angeles Lakers and the Cadillac F1 racing team, alongside a $15 billion fund dedicated to AI investments, established in partnership with Abu Dhabi’s Mubadala Capital. TWG Global has also previously engaged in a partnership with Elon Musk's xAI and Palantir to deliver AI agents to enterprise clients.
Lambda operates a network of AI data centers across the U.S. and markets its "AI factories" to hyperscaler clouds. The company confirmed its significant deal with Microsoft earlier this month. Nvidia, a key supplier of GPUs for AI workloads, is also an investor in Lambda. This development occurs as the market for AI infrastructure experiences intensified competition and substantial investment.
The deal echoes earlier market activity, including Microsoft's reported acquisition of approximately $1 billion in services from CoreWeave in 2024. Subsequently, OpenAI reportedly finalized a $12 billion deal with CoreWeave in March.
Prior to this latest funding round, industry observers had anticipated Lambda seeking hundreds of millions of dollars at a valuation exceeding $4 billion, with discussions also involving a potential Initial Public Offering (IPO). In February, Lambda secured $480 million in a Series D round, which PitchBook estimated at a $2.5 billion valuation. The current $1.5 billion raise significantly surpasses previous reported funding targets, though Lambda declined to comment on its latest valuation.
