AI data center provider Lambda announced Tuesday that it has raised $1.5 billion in a round led by TWG Global, a relatively new $40 billion investment firm founded by billionaire Thomas Tull, former owner of Legendary Entertainment, and Mark Walter, founder and CEO of Guggenheim Partners.
TWG holds various assets of the billionaire, including his stake in the Los Angeles Lakers and the new Cadillac F1 racing team. The company also has a $15 billion fund investing in AI backed by Abu Dhabi's Mubadala Capital. TWG previously invested in a partnership with Elon Musk's xAI and Palantir to sell AI agents to enterprises.
Currently, we are supporting Lambda, which operates numerous AI data centers in the United States. Lambda is a competitor to CoreWeave, but it also sells its “AI factories” to hyperscaler clouds. Earlier this month, Lambda announced a multibillion-dollar deal to supply Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs. (Nvidia is also investing in Lambda.)
Recall that Microsoft had a similar deal with CoreWeave, acquiring approximately $1 billion worth of services from the company in 2024. The company was its largest customer by a mile last year. Then OpenAI swooped in and signed a $12 billion deal with CoreWeave in March.
Meanwhile, deal watchers have been talking for months that Lambda was looking to raise hundreds of millions of dollars at a valuation of more than $4 billion. There was also talk of an IPO. Previously, Lambda raised $480 million in Series D funding in February, at an estimated valuation of $2.5 billion, according to PitchBook.
Lambda's $1.5 billion raise far exceeds previous whispers about what Lambda was looking for. It could not be confirmed whether the valuation had also skyrocketed, and Lambda declined to comment on it.