AI Compute Startup Lambda Hits $1.5B Valuation After Massive $320M Raise

Lambda, a cloud computing service provider specializing in training artificial intelligence software, has achieved unicorn status following a successful $320 million Series C funding round. This financing round, conducted at a valuation of $1.5 billion, was spearheaded by Thomas Tull’s US Innovative Technology Fund and saw the participation of prominent investors such as B Capital Group, SK Telecom, T. Rowe Price Associates, Crescent Cove Advisors, Mercato Partners, and others.

The San Jose-based startup, known for offering Nvidia’s latest GPUs coveted by AI developers, counts tech giants Microsoft and Amazon among its clientele. This funding round stands out as the largest raised by an AI startup this year, as per Crunchbase data, signaling a resurgence in the AI sector which has now accumulated over $3 billion in funding for the year.

Lambda is not the only player in the AI cloud computing space to attract substantial investment recently. CoreWeave, an AI cloud infrastructure company, secured a $200 million Series B extension funding round last May, co-led by Magnetar Capital, valuing the company at $2 billion. Notably, CoreWeave had just raised $221 million a few weeks prior to this significant funding round.