By Nauman Khan
Publication Date: 2026-01-09 18:13:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) stock rose about 0.5% on Friday morning after Lambda, an AI cloud infrastructure provider, revealed plans to raise at least $350 million in a pre-IPO funding round.
Nvidia serves as a key partner, renting tens of thousands of its AI chips to Lambda in deals totaling $1.5 billion, supporting the company’s AI cloud services and strengthening its position ahead of a potential IPO. Mubadala Capital, which manages funds for the UAE government and other investors, is in talks to lead the round, offering shares roughly 20% below the expected IPO price.
The funding positions Lambda for a potential IPO in the second half of 2026. Convertible notes in the deal provide investors with equity or cash interest if the IPO does not occur within a year, along with an option to participate in the IPO itself.
Lambda competes with CoreWeave (NASDAQ:CRWV) and Nebius (NASDAQ:NBIS) in the AI…
