Artificial intelligence (AI) cloud startup Lambda said Tuesday (Aug. 19) that it has closed a $275 million senior secured credit facility, led and arranged by JPMorgan.
The Nvidia-backed startup said other lenders include Citi, MUFG and Crédit Agricole. It plans to use the financing to build more AI data centers and expand its fleet of GPU servers to meet growing AI demand from enterprises and other customers.
Lambda, which describes itself as one of the industry’s only AI-pure infrastructure providers, said the financing reflects lenders’ “confidence” in its growth strategy, market leadership and ability to build AI factories.
“This financing strengthens Lambda’s capital structure and supports our long-term vision of becoming the default choice for building gigawatt-scale AI factories for superintelligence,” said Lambda CFO Peter Seibold in a statement.
The credit facility is structured to grow alongside Lambda’s business, giving it financial flexibility to pursue strategic opportunities.
The AI startup’s ambitions come amid industry plans to build more data centers as AI demand soars. These include the initially ambitious $500 billion Stargate project from OpenAI, SoftBank, Oracle and MGX, as well as billions cumulatively in investments from Meta, Google, Amazon, Microsoft, CoreWeave, Blackstone and other firms.
Last month, rival AI cloud company CoreWeave acquired Core Scientific for $9 billion in stock. Core Scientific runs large data centers designed for AI workloads, with roots in crypto mining. In March, CoreWeave went public. Since then, its stock has more than doubled.
Raising Half a Billion Dollars
Beyond the credit facility, Lambda has also raised funds to build more AI data centers.
In February, it raised a $480 million Series D round.
The startup said the round would fuel the expansion of its cloud platform, infrastructure and software, enabling AI developers to train, fine-tune and deploy models more efficiently.
Lambda also noted at the time that it would continue building software tools for developers and expanding Lambda Chat, which hosts models such as DeepSeek R1 and other open-source systems.
Also on Tuesday, Lambda also announced a new platform to validate and assess AI agents. Called Agent-to-Agent testing, it provides a standardized way to test the quality of AI agents. The agents are tested against key metrics such as hallucinations, bias and completeness.
Founded in 2012, Lambda was established by AI engineers with the aim of making access to computation “as effortless and ubiquitous as electricity,” according to the company.
Source: https://www.pymnts.com/
