Lambda inks $1B private debt for Nvidia chip deal

Lambda obtained about $1 billion of short-term private debt, arranged by JPMorgan, to buy Nvidia GPUs that Microsoft will lease, so the loan is secured by Microsoft’s lease payments. It follows a prior $917 million borrowing tied to an Nvidia contract and precedes discussions for up to $3 billion of financing ahead of a potential listing. Similar financing structures have been used by European firm Nebius, which raised $775 million against its GPUs for a five-year, $19.4 billion Microsoft lease.