Lambda Targets $5B Valuation

California-based infrastructure company Lambda, backed by Nvidia, is in talks to raise new funding. According to Tech in Asia, the company’s valuation could reach $4–5 billion, reflecting strong investor appetite for infrastructure that powers artificial intelligence (AI) systems.

It is also important to note that Raison invested in Lambda via an SPV (Special Purpose Vehicle) in January 2025, joining the group of early institutional investors supporting the company’s growth.

Market Position of Lambda

In February 2024, Lambda raised $480 million, valuing the company at $2.5 billion. The upcoming round is expected to exceed that benchmark. In parallel, Lambda is also considering a potential initial public offering (IPO) by late 2025.

What Makes Lambda a Key Player

• Growth of AI infrastructure. The company’s new funding talks underscore the scale of capital flowing into cloud services optimized for AI workloads.
• IPO on the horizon. Lambda has already begun preliminary consultations with banks, preparing for a possible listing — a sign of long-term ambition and confidence in demand.
• Computational capacity. Lambda operates more than 1 million Nvidia GPUs (Graphics Processing Units) across its U.S.-based data centers, providing a competitive advantage in delivering cloud solutions for AI.

Structure of the New Round

The company is targeting “hundreds of millions of dollars” in fresh capital — potentially exceeding its February round. Nvidia’s possible participation adds strategic depth, reinforcing the value of the partnership and highlighting sustained interest in AI-focused infrastructure.

Investment Context

• Capitalization growth. Within a year, Lambda’s valuation could nearly double — from $2.5 billion to as high as $5 billion.
• Role of strategic investors. Nvidia’s involvement provides not only financial backing but also integration into one of the most influential technology ecosystems.
• Importance of GPUs for AI. Large-scale GPU infrastructure has become a critical foundation for next-generation artificial intelligence projects worldwide.

Conclusion

Lambda is showing accelerated growth in the AI infrastructure segment. The new funding round and preparations for an IPO confirm the rising demand for specialized cloud solutions, while Nvidia’s backing consolidates Lambda’s position among leading players. Raison’s investment via SPV further emphasizes the strategic importance of this sector within the company’s portfolio.