Lambda Secures $1.5 Billion in Funding After Major Microsoft Partnership
Lambda, the AI data center provider, announced on Tuesday that it has successfully raised $1.5 billion in a funding round led by TWG Global, a newly established investment firm valued at $40 billion. TWG is backed by prominent billionaires Thomas Tull, the former owner of Legendary Entertainment, and Mark Walter, founder and CEO of Guggenheim Partners.
This strategic partnership not only showcases the financial muscle of TWG, which manages various high-profile investments, including Walter’s shares in the Los Angeles Lakers and the Cadillac F1 racing team, but also its commitment to advancing AI technologies. The firm has a dedicated $15 billion fund earmarked for AI investments, supported by Abu Dhabi’s Mubadala Capital. TWG has previously collaborated with notable entities such as Elon Musk’s xAI and Palantir in efforts to deploy AI agents within corporations.
Lambda, which operates several AI data centers across the United States, competes with firms like CoreWeave while also supplying its “AI factories” to large cloud operators. Earlier this month, it entered into a significant multibillion-dollar agreement with Microsoft to provide extensive AI infrastructure powered by tens of thousands of Nvidia GPUs, a significant investor in Lambda.
Microsoft, having previously struck a $1 billion deal with CoreWeave in 2024, is now diversifying its AI partnerships, particularly after OpenAI secured a $12 billion deal with CoreWeave in March.
Additionally, market analysts have indicated that Lambda was exploring a funding round in the hundreds of millions, with a targeted valuation exceeding $4 billion and discussions around a potential IPO. Prior to this successful funding, Lambda had completed a $480 million Series D round in February, resulting in an estimated valuation of $2.5 billion, according to PitchBook.
While the $1.5 billion funding significantly surpasses analysts’ speculations, the exact impact on Lambda’s valuation remains unverified, as the company declined to provide further details.
