GPU cloud company Lambda Labs has secured a $500 million financing vehicle to fund the expansion of its on-demand cloud offering.
The funding was led by Macquarie Group with participation from Industrial Development Funding (IDF). It follows on from the company’s $320 million Series C funding round in February which resulted in the company receiving a valuation of $1.5 billion.
In a statement, Lambda said the new financing will be used to fund the on-demand cloud deployments for thousands of users, eliminating the need for them to sign a long-term contract. The financing will also support Nvidia GPU deployments for AI developers who are training and inferencing generative AI models in Lambda Cloud.
“This first-of-its-kind financing vehicle unlocks a new way to fund the deployment of tens of thousands of Nvidia GPUs,” said Mitesh Agrawal, Lambda COO. “Lambda’s mission is to continue to build the best AI compute platform in the world, and this structure lets our AI startup customers build the next generation of iconic companies on top of our cloud without the barrier of expensive multi-year contracts.”
Founded in 2012, Lambda Labs rents out colocation space in data centers in San Francisco, California, and Allen, Texas, and offers comparatively low-cost GPU-based cloud compute. Alongside the cloud, it offers colocation space and sells GPU desktops.
