Nvidia-Backed Lambda Snags $1 Billion in Private Debt for Chip Deal

Lambda Inc., an AI cloud-computing provider backed by Nvidia Corp., has secured about $1 billion of private short-dated debt to support its computing chip deal with Microsoft Corp.

The transaction was arranged by JPMorgan Chase & Co. and marketed to private placement investors, according to people familiar with the matter who spoke on condition of anonymity.

The deal ties in with Lambda's collaboration with Microsoft, which aims to leverage high-performance computing chips for AI workloads.