Cloud computing startup Lambda Labs is in talks to raise an additional $800 million to take advantage of the growing demand for artificial intelligence and the shortage of advanced graphics processing units. This funding would add to the $320 million raised by the company earlier this year, and would help fund the expansion of its cloud services. The funding round, expected to be completed in mid-July, is being coordinated by JPMorgan.
Led by co-founder Stephen Balaban, Lambda Labs has a close relationship with Nvidia, whose GPUs are in high demand as companies like OpenAI, Anthropic, and CoreWeave compete for computing capacity. CEO Jensen Huang has been working to diversify Nvidia’s customer base and create new rivals to cloud giants like Google, Amazon, and Microsoft. CoreWeave, a rival to Lambda, recently raised $7.5 billion in debt and $1.1 billion in equity, reaching a valuation of $19 billion.
Lambda Labs previously raised funds from investors like US Innovative Technology, B Capital, SK Telecom, and T Rowe Price, as well as individuals like Adam D’Angelo, Greg Brockman, and Garry Tan. The company originally focused on facial recognition before shifting to artificial intelligence, and ultimately to cloud computing. This new funding round will be used to purchase more Nvidia GPUs, expand cloud networking software, and hire additional staff.
The rapid funding sequence for Lambda Labs reflects the increasing demand for Nvidia’s GPUs and the infrastructure needed for generative AI. With the current bull market around AI, Lambda Labs is looking to capitalize on this trend and solidify its position in the competitive cloud computing market. This new funding round will likely propel the company into the ranks of Silicon Valley’s best-funded startups, positioning it for future growth and success in the AI space.
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https://www.ft.com/content/26b69bb9-97d7-46de-8950-264f1bcc0f4f
