Lambda Secures $1 Billion Debt Financing for Nvidia Chip Rentals

Lambda, a cloud provider of artificial intelligence computing capacity, has secured $1 billion in private short-term debt financing to purchase Nvidia chips. The funds will be used to lease the graphics processors to Microsoft.

The loan's short term indicates that Lambda expects to quickly deploy the hardware and generate revenue from leasing it to repay the debt.

This is not the first time Lambda has used debt financing to expand its computing infrastructure for specific customers. The company previously opened a $1 billion secured credit facility in May, and also secured a $926 million loan to purchase Nvidia GB300 graphics processors.