Lambda is raising up to $3bn before an IPO, months after borrowing $917m for chips

Lambda is negotiating a pre-IPO financing round of up to $3 billion at a valuation of at least $12 billion, after previously borrowing $917 million secured by its Nvidia GPUs to purchase additional chips. The company rents Nvidia accelerators to AI developers, recently signing a cloud deal with Hudson River Trading, while facing margin pressure from rising GPU prices and the need for long-term contracts to mitigate hardware depreciation risks.