Lambda Inc., an artificial intelligence cloud-computing provider, is in advanced discussions to raise as much as $3 billion in its next funding round, according to people familiar with the matter.
The proposed financing would value the company at $12 billion or higher, the people said, requesting anonymity because the talks are private. Terms remain under negotiation and no final decisions have been made, they added.
The San Francisco-based startup operates in the fast-growing segment of "neoclouds," companies that rent out access to high-performance AI chips and related infrastructure to other businesses. The model has gained traction as demand for AI compute capacity surges amid the broader adoption of generative artificial intelligence technologies.
Nvidia Corp., a major investor in Lambda, is expected to participate in the round, the people said. The company’s backing underscores the strategic importance of neocloud providers in scaling AI infrastructure globally.
If completed, the funding would position Lambda among the highest-valued private companies in the AI services sector. The company has not disclosed a timeline for closing the round or pursuing a public listing, though discussions have referenced a potential initial public offering in the next year as part of long-term strategic planning.
