Lambda, an AI cloud company, has raised $1 billion in private, short-dated debt arranged by JP Morgan Chase to purchase Nvidia AI chips that it will lease to Microsoft, according to Bloomberg. The terms indicate Lambda expects to deploy the chips quickly and generate revenue to repay the debt. This is part of a series of debt deals: in May, Lambda closed a $1 billion secured credit facility, and this week it announced a $926 million loan to fund Nvidia GB300 GPUs for a contracted deployment with Nvidia.

The $1 billion private debt deal comes amid reports that Lambda is in talks for a $3 billion pre-IPO round. The company previously raised $1.5 billion in venture capital in November 2025 at a $5.43 billion post-money valuation. Lambda is not alone in using debt to fuel AI infrastructure; Bloomberg data shows that banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far.