AI data center operator Lambda yesterday announced it has raised US$ 1.5 billion in funding from TWG Global and US Innovative Technology Fund (USIT), to develop gigawatt-scale AI factories and supercomputers in the US. The funds are relatively new and are founded by billionaires Thomas Tull and Mark Walter.
In a press release, Lambda stated its intent to deliver large-scale AI factories that power mission-critical training and inference, as demand for compute is rising and data center space is limited.
Stephen Balaban, co-founder and CEO of Lambda said, “This round of funding helps enable Lambda to develop gigawatt-scale AI factories that power services used by hundreds of millions of people every day.”
Thomas Tull, Co-Chairman of TWG Global and Chairman of USIT said, “Generating enough compute power for AI is a defining infrastructure challenge of our time. We believe that Lambda is well-positioned to solve this challenge and continue to deliver in the decades ahead.”
TWG Global’s latest investment in Lambda showcases an intensifying demand for AI compute capacity as Lambda sells its “AI factories” directly to hyperscale cloud providers and operates a network of U.S. based data centers and is considered a major competitor to CoreWeave.
The investment comes amid months of speculation that Lambda was seeking a valuation above US$ 4 billion, following its US$ 480 million Series D in February that valued the company at roughly US$ 2.5 billion, according to PitchBook. Talk of a potential IPO has been circulated.
The new US$ 1.5 billion round significantly exceeds expectations since Lambda’s valuation climbed. This new deal positions Lambda as a key contender in an increasingly competitive race to build out the AI infrastructure that underpins today’s model-training boom.