Lambda, a prominent AI infrastructure provider, has raised $480 million in a Series D funding round, elevating its total equity capital to $863 million. The investment aims to accelerate the expansion of Lambda’s Cloud platform, Model Inference API, and Chat AI Assistant.
The funding round was co-led by Andra Capital and SGW, with participation from notable investors including Andrej Karpathy, ARK Invest, Fincadia Advisors, G Squared, In-Q-Tel , KHK & Partners, and NVIDIA. Strategic investments also came from hardware manufacturers Pegatron, Supermicro, Wistron, and Wiwynn, alongside existing investors such as 1517, Crescent Cove, and USIT.
Stephen Balaban, CEO and co-founder of Lambda, emphasized the transformative impact of AI on the global economy, stating, “AI is fundamentally restructuring our economy. Lambda is investing billions of dollars to build the software platform and infrastructure powering AI.” He highlighted that the new investment would enhance the Lambda Cloud platform, enabling AI developers to train, fine-tune, and deploy models more efficiently.
Founded in 2012, Lambda has established itself as a key player in the AI sector, offering cloud services and software tailored for AI model development. The company provides access to servers equipped with NVIDIA’s AI GPUs, catering to the growing demand for high-performance hardware in AI applications. Additionally, Lambda offers software solutions and hosted services that allow enterprises to run and deploy various AI models, including open-source options.
The infusion of capital will support Lambda in scaling its infrastructure and software offerings. This includes expanding the Lambda Cloud platform and deploying additional GPUs to meet increasing customer demand. The company also plans to continue developing Lambda Chat, which hosts models like DeepSeek-R1 and other open-source AI tools.
Balaban noted the democratization of AI over the past year, driven by open-source initiatives and advancements in large language model reasoning. He pointed out that numerous high-quality open models, such as Llama, DeepSeek-R1, and Mochi 1, have made state-of-the-art AI accessible to individuals, companies, and research institutions worldwide. “Open-source reasoning models allow anybody on the planet to contribute to the progress of AI, and no company is better positioned than Lambda to provide that compute,” Balaban added.
The Series D funding round reflects a growing interest in AI infrastructure and the competitive landscape among tech companies aiming to lead in this rapidly evolving market. Investors are placing significant bets on Lambda’s potential to deliver innovative solutions that could reshape the AI industry in the coming years.
Lambda’s comprehensive portfolio ranges from on-premises GPU hardware to hosted GPUs in the cloud. The company’s hardware and private cloud services cater to over 5,000 customers across various industries, including manufacturing, healthcare, pharmaceuticals, financial services, and government sectors. By offering fast access to the latest GPUs and architectures, Lambda supports the training, fine-tuning, and inferencing of generative AI and large language models.
The strategic investments from hardware manufacturers such as Pegatron, Supermicro, Wistron, and Wiwynn underscore the importance of robust infrastructure in supporting AI development. These partnerships are expected to enhance Lambda’s capabilities in delivering high-performance computing resources to its clientele.
