AI computing startup Lambda to raise $4B ahead of planned IPO

AI computing startup Lambda is preparing to raise up to $4 billion in a pre-IPO fundraising round, ahead of its planned 2027 IPO, according to The Wall Street Journal. Coatue Management and Blackstone are leading the round, which could value the company at $14.5 billion before the money is raised. The company's backlog has grown from $15 billion in June to $50 billion in September, driven largely by a $35 billion commitment from AI lab Anthropic.

This suggests that Lambda's valuation may be heavily dependent on Anthropic's ability to continue paying for its services. Despite high demand for reliable GPU capacity, investors still see value in companies that can provide it, especially those with large contracts with major AI labs. Lambda has also recently raised an additional $1 billion in debt to fund its data center buildouts, which are mostly funded through borrowing.

The timing of Lambda's fundraising is strategic, as it sets the tone for its IPO pricing and provides access to capital before the rigors of public markets begin. If the company does decide to go public, it will join other Nvidia-backed neoclouds like CoreWeave and Nebius, who also rely on the health of their stock to fund their data center expansions.

Nscale, a British neocloud, recently filed for an IPO and is expected to begin trading soon. Both Lambda and its backers declined to comment on the fundraising round.