Neocloud Lambda secures $1B in debt to buy more chips
Neocloud Lambda has raised $1B in private debt to buy Nvidia AI chips and lease them to Microsoft. It's the latest in a string of loans, underscoring the high cost of the AI boom.
Lambda, an AI cloud company that buys computing chips and rents them out to businesses, has raised $1 billion in private, short-dated debt to buy Nvidia’s AI chips that it will lease to Microsoft, Bloomberg reports .
This is the latest in a string of loans that Lambda is using to fund GPU infrastructure for specific customers. In May, it closed a $1 billion secured credit facility, and this week it announced the closing of a $926 million loan to fund Nvidia GB300 GPUs, one of Nvidia’s newest chip models, for a deployment it’s under contract to provide Nvidia.
The $1 billion private debt deal comes as Lambda is reportedly in talks for a $3 billion pre-IPO round . The company last November raised $1.5 billion in venture capital at a $5.43 billion post-money valuation, per PitchBook data.
Lambda isn’t the only one relying on debt to fund the AI boom, according to data Bloomberg compiled, banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far.
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