Neocloud Lambda secures $1B in debt to buy more chips
Neocloud Lambda has raised $1B in private debt to buy Nvidia AI chips and lease them to Microsoft. It's the latest in a string of loans, underscoring the high cost of the AI boom.
AI cloud company Neocloud Lambda has secured $1 billion in private, short-dated debt to acquire Nvidia’s AI chips, according to Bloomberg. The arrangement, facilitated by JP Morgan Chase, suggests that Lambda is confident in its ability to rapidly deploy the chips and begin generating revenue, which will enable the company to repay the debt swiftly.
This latest loan is part of a series of financing options that Lambda is utilizing to fund GPU infrastructure for specific clients. In May, Lambda completed a $1 billion secured credit facility, and recently, it announced a $926 million loan to acquire Nvidia GB300 GPUs, one of Nvidia’s most recent chip models, under contract to provide to Nvidia itself.
The $1 billion private debt deal follows reports that Lambda is negotiating a $3 billion pre-IPO round. The company previously raised $1.5 billion in venture capital in November last year, valuing Lambda at $5.43 billion. According to Bloomberg's data, banks and tech firms have collectively raised over $400 billion in AI-related debt worldwide in 2026 thus far.
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