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.
The funding would add to the $320mn that the San Jose-based group raised in February at a $1.5bn valuation. Lambda also announced in April that it had secured a $500mn loan using its Nvidia chips as collateral, which it would use to fund the expansion of its cloud services.