Nvidia partner Lambda Labs seeks $800mn as AI computing demand soars

Lambda Labs, a cloud computing start-up that rents out servers powered by Nvidia’s artificial intelligence chips, is in talks to raise another $800mn as it looks to capitalise on the bull market around AI and the scarcity of the most advanced graphics processing units. The proposed deal would vault the company into the ranks of Silicon Valley’s best funded start-ups of recent years, at a time demand is skyrocketing for the computing infrastructure behind the generative AI boom.

Lambda declined to comment. Led by co-founder Stephen Balaban, Lambda has been the beneficiary of a close relationship with Nvidia, which has risen to challenge Microsoft and Apple as the most valuable company in the world, managing to reach a $3tn market capitalisation. Chief executive Jensen Huang has funnelled its GPUs to the likes of Lambda and its rival CoreWeave as he seeks to diversify Nvidia’s customer base and create new rivals to cloud giants Google, Amazon and Microsoft.

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