Lambda raises $1B in private debt for Nvidia chip collaboration with Microsoft

Lambda just put another billion dollars on its tab. The San Francisco-based AI cloud provider raised approximately $1 billion in a private short-dated debt offering, arranged by JPMorgan Chase, to fund the purchase of Nvidia GPUs that will be leased directly to Microsoft. How the math works Lambda buys Nvidia chips using borrowed money, then rents those chips to Microsoft under a multi-year contract. The revenue from the lease repays the debt. The GPU assets and expected contract revenue serve as collateral, which is the same playbook competitors like CoreWeave have used to scale quickly without raising purely dilutive equity. Lambda’s Microsoft collaboration was established in 2025, covering tens of thousands of Nvidia GPUs deployed under what the company calls its “Superintelligence Cloud.” The new $1 billion raise is essentially Lambda restocking that pipeline. This financing round came one day after Lambda closed a separate $926 million senior secured term loan B facility on August 27, 2026. That loan carried a Moody’s Baa2 rating and was priced at SOFR plus 3.00%, with a maturity date of December 31, 2030. It was the first large-scale private-cloud GPU asset-backed SPV financi...