AI data center provider Lambda just closed a whopping $1.5 billion funding round led by TWG Global, crushing initial expectations after landing a multi-billion dollar Microsoft deal earlier this month. The raise signals massive investor appetite for AI infrastructure as hyperscalers scramble to secure computing capacity for the next wave of AI deployments.
Lambda just dropped a funding bombshell that's reshaping the AI infrastructure landscape. The data center provider announced Tuesday it raised $1.5 billion in a round led by TWG Global, the relatively new $40 billion investment firm backed by billionaires Thomas Tull and Mark Walter. The massive raise comes just weeks after Lambda inked a multi-billion dollar deal with Microsoft to supply AI infrastructure using tens of thousands of Nvidia GPUs.
The timing isn't coincidental. Microsoft has been aggressively securing AI computing capacity as demand for cloud-based AI services explodes. The tech giant previously struck similar deals with CoreWeave, buying about $1 billion worth of services from the GPU cloud provider in 2024. But then OpenAI upped the ante with a $12 billion CoreWeave deal in March, forcing Microsoft to diversify its infrastructure partnerships.
Enter Lambda, which operates what it calls 'AI factories' - specialized data centers optimized for training and running large language models. The company directly competes with CoreWeave in the GPU cloud space while also selling infrastructure to hyperscalers like Microsoft. Nvidia has been a key investor, reflecting the chip giant's strategy of backing infrastructure providers that drive demand for its H100 and upcoming Blackwell GPUs.
TWG Global's involvement adds serious firepower to Lambda's expansion plans. The investment firm, founded by former Legendary Entertainment owner Thomas Tull and Guggenheim Partners CEO Mark Walter, holds diverse assets including stakes in the Los Angeles Lakers and the new Cadillac F1 team. More importantly for Lambda, TWG has a $15 billion AI-focused fund anchored by Abu Dhabi's Mubadala Capital and previously invested in partnerships between to sell AI agents to enterprises.
