Nvidia-backed AI cloud provider Lambda seeks $4 billion ahead of planned 2027 IPO

Lambda, an Nvidia-backed cloud computing company that rents out Nvidia graphics processors for training and running AI models, is in talks to raise up to $4 billion in what would be its last private funding round before a planned initial public offering, the Wall Street Journal reported on October 6, 2026, citing people familiar with the matter. Reuters and TechCrunch subsequently carried the same report.

The round is reported to value Lambda at about $14.5 billion before the new money is added, with the private equity firm Blackstone and the investment firm Coatue Management leading the deal. Lambda is said to be targeting a public listing in 2027, though the timing depends on execution and market conditions. Lambda did not immediately respond to requests for comment.

According to the report, a letter sent to Lambda's investors and reviewed by the Journal shows the company's backlog of unfilled customer orders grew sharply, from about $15 billion in June to roughly $50 billion in September.

Much of that jump is tied to a single customer: the report says about $35 billion of the backlog increase stems from a computing-capacity agreement that Lambda signed with the AI company Anthropic in late August.

Lambda is part of a group of so-called neocloud providers that buy large numbers of Nvidia chips and resell computing time to AI labs and other customers. Nvidia itself has invested in Lambda across earlier funding rounds, including a Series D round in February 2025 and a Series E round led by TWG Global in November 2025.

The scale of Lambda's backlog growth illustrates how concentrated AI infrastructure spending has become around a handful of long-term contracts with major AI labs, a dynamic investors are weighing alongside the broader surge in capital spending on AI data centers and chips.