Lambda secures $1 billion debt to expand AI chip infrastructure

Lambda, an AI cloud company, has raised $1 billion in private, short-dated debt to purchase Nvidia’s AI chips for lease to Microsoft, according to Bloomberg. The deal, arranged by JP Morgan Chase, reflects Lambda’s confidence in quickly deploying the chips and generating revenue to repay the debt. This follows a $1 billion secured credit facility in May and a $926 million loan for Nvidia GB300 GPUs, part of a contract with Nvidia. Lambda is also reportedly in talks for a $3 billion pre-IPO round, having raised $1.5 billion in November at a $5.43 billion valuation. Globally, over $400 billion in AI-related debt has been raised in 2026, highlighting the sector’s reliance on financing. Bloomberg notes the trend as part of a broader shift in funding strategies for AI infrastructure.