Lambda, the Nvidia-backed AI cloud provider, is raising up to $4 billion at a $14.5 billion pre-money valuation in what would be its final funding round before a planned initial public offering, The Wall Street Journal reported Tuesday, citing people familiar with the matter.
Investment firms Blackstone and Coatue Management are leading the round, the Journal reported. Lambda aims to go public in 2027, depending on execution and market conditions, according to a letter to the company’s limited partners that the Journal reviewed. The same letter put Lambda’s backlog of unfilled orders at $50 billion in September, up from $15 billion in June, according to the Journal. Lambda did not immediately respond to a Reuters request for comment.
In early September, Reuters reported that Anthropic had signed a $35 billion cloud deal with Lambda for capacity at a Texas data center, citing a person familiar with the matter; the Journal first reported the agreement. The companies had not publicly confirmed those terms at the time.
The new round is larger than the one Lambda was discussing in late summer. Bloomberg reported on August 24 that Lambda was in talks to raise as much as $3 billion at a valuation of $12 billion or more, in a round that could position it for a public offering in 2027. Talks were ongoing and terms had not been finalized. Lambda is one of the so-called neoclouds that rent out access to AI chips and infrastructure.
Lambda announced a Series E of more than $1.5 billion in November 2025, led by TWG Global, the holding company led by Thomas Tull and Mark Walter, with Tull’s US Innovative Technology Fund and existing investors participating. At the time, chief executive Stephen Balaban said the money would help Lambda build “gigawatt-scale AI factories.” Founded in 2012, the company says its customers range from AI researchers to enterprises and hyperscalers.
Sources
- The Wall Street Journal: AI neocloud Lambda is raising $4 billion in final round before planned IPO (October 6, 2026; subscription)
- Reuters via CNA: Nvidia-backed Lambda targets $4 billion raise ahead of planned IPO, WSJ reports (October 6, 2026)
- Investing.com: Lambda raises up to $4 billion ahead of planned 2027 IPO, WSJ reports (October 6, 2026)
- Bloomberg: AI Cloud Provider Lambda in Talks for $3 Billion Pre-IPO Round (August 24, 2026; subscription)
- Investing.com: Lambda in talks to raise $3 billion at $12 billion valuation, Bloomberg (August 24, 2026)
- Lambda: Lambda Raises Over $1.5B from TWG Global, USIT to Build Superintelligence Cloud Infrastructure (November 18, 2025)