Neocloud Lambda secures $1B in debt to buy more chips

Neocloud Lambda secures $1B in debt to buy more chips

Fri, August 28, 2026 at 11:24 PM GMT+3 1 min read

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.

The terms of the deal, which Bloomberg says was arranged by JP Morgan Chase, signal that Lambda is betting it will be able to quickly deploy the chips and start generating revenue from them, letting it repay the debt fairly quickly using that incoming cash.

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.