Lambda Secures $1 Billion in Private Debt for Nvidia GPU Purchases

Neocloud Lambda has secured $1 billion in private short-term debt to purchase Nvidia GPUs, according to reports. The funding was organized by JPMorgan Chase & Co and offered to private placement investors. This is not the first time Lambda has turned to debt financing; the company recently secured a $926 million senior secured loan facility to support its GPU cloud platform.

Lambda will lease the Nvidia GPUs to Microsoft under an ongoing agreement between the two companies. This agreement was expanded in November 2025, with Microsoft gaining access to tens of thousands of Nvidia GB300 NBL72 systems via Lambda's platform. The value of this multi-billion-dollar agreement is not specified.

This private debt offer comes as Lambda prepares for its initial public offering (IPO), which is expected to take place next year. In fact, reports emerged last week that the company was seeking to raise up to $3 billion ahead of its IPO. Lambda has already secured a $1 billion credit facility in May 2026 and operates out of 15 data centers across the US.