STOCKS | Lambda Raises About $1 Billion in Short-Term Private Debt to Buy Nvidia Chips for Microsoft

Lambda, an AI cloud infrastructure provider, raised about $1 billion in short-term private debt around Friday, August 28, to buy Nvidia graphics processors and lease computing power to Microsoft. According to Sina Finance, multiple media reports said JPMorgan arranged the deal and placed it with private investors. The report said the short-term debt means Lambda must deploy the chips quickly so rental income can cover principal and interest payments. Full terms, including the interest rate and maturity date, have not been disclosed. Lambda said on August 27 that it closed a $926 million senior secured term loan B, also for buying and deploying GPU infrastructure for a contracted investment-grade customer. The loan was priced on August 12, Moody's assigned it a Baa2 investment-grade rating, and it matures on December 31, 2030. PitchBook records show Lambda completed a $1.5 billion equity financing in November last year at a post-money valuation of $5.43 billion. Media reports also said the company is in talks for about $3 billion in pre-IPO financing and could go public next year, although that round has not been announced as closed.