Lambda Inc., a startup with a cloud platform designed to run artificial intelligence workloads, is reportedly seeking to raise $350 million in funding.
Sources told The Information late Thursday that Mubadala Capital is in talks to lead the round. The report comes less than two months after Lambda announced its last raise, a $1.5 billion Series E investment led by TWG Global. The company told the Wall Street Journal at the time that it would use the capital to expand its data center network.
Lambda operates a dozen data centers in the U.S. that host liquid-cooled graphics card racks. The company’s flagship offering, a service called Superclusters, enables customers to rent server clusters with up to 165,000 Nvidia Corp. chips. Lambda gives each organization control over the firewall that regulates inbound network traffic to its Supercluster. Customers also can manage their deployments’ encryption keys and monitoring software.
An organization with particularly advanced requirements can have Lambda customize its cluster. The company offers a choice between Nvidia Corp.’s GB300 NVL72 appliances, which each include 72 graphics processing units, and the 8-chip HGX B300 module. Both systems are based on the chipmaker’s Blackwell Ultra accelerator.
In November, Lambda revealed plans to build a new generation of clusters based on Nvidia’s Vera Rubin NVL144 systems. The appliances are based on a new GPU called Rubin that the company debuted at CES on Monday. The chip can provide 50 petaflops of performance for models that process NVFP4 data, five times more than Blackwell.
Lambda will link together the Rubin chips in its clusters using Nvidia’s co-packaged optics hardware. Historically, network switches relied on a standalone device called a transceiver to transmit data over fiber-optic cables. Nvidia’s co-packaged optics technology integrates a transceiver into switches’ main processor, which significantly cuts power consumption.
Lambda’s servers run a custom software suite called the Lambda Stack. It comprises open-source AI tools that the company has optimized for its hardware. The suite includes PyTorch and other popular development tools along with more specialized technologies such as JAX. The latter software, which was open-sourced by Google LLC in 2018, speeds up the mathematical operations that AI models use to learn new information.
The funding round that Lambda is reportedly raising may be its last before going public. In September, sources told The Information that the company was hoping to list its shares by July 2026. This week’s report indicates that the company has pushed back the public offering to the second half of the year.
Image: Lambda
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About News Media
Founded by tech visionaries John Furrier and Dave Vellante, News Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
