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Nvidia Cloud Ally Nears $300 Million Financing

Nvidia Cloud Ally Nears $300 Million Financing
By Kate ClarkandAnissa Gardizy | Oct. 9, 2023 5:21 PM PDT

Lambda Labs, which competes with Amazon Web Services in renting out servers with Nvidia chips to developers of artificial intelligence, is nearing a $300 million equity financing, according to two people with direct knowledge of the matter. An investment fund led by billionaire Thomas Tull plans to fund a substantial part of the round, one of these people said.

As demand for Nvidia’s AI chips has skyrocketed this year, revenue at startups such as Lambda has boomed, attracting interest from some investors. The funding, which would value the 11-year-old startup at $1.5 billion including the new capital, hasn’t closed yet. Based on a multiple of this year’s projected revenue, Lambda shares are priced at a hefty discount to those of a bigger rival, CoreWeave, which has been trying to sell $500 million worth of employee shares to new investors.

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