AI neocloud Lambda to raise $4B at $14.5B valuation ahead of 2027 IPO
AI summary
Cloud provider Lambda is raising up to $4 billion at a $14.5 billion pre-money valuation, led by Coatue Management and Blackstone, in what could be its last private round before a planned 2027 IPO, according to The Wall Street Journal. TechCrunch, citing an investor letter, reports Lambda's backlog grew from $15 billion in June to $50 billion in September, with much of that increase driven by a $35 billion commitment from Anthropic signed in late August. Lambda also closed an additional $1 billion in debt financing last week to buy more chips.
In-depth insight
The round highlights AI neoclouds' growing reliance on debt and single large customers to fund data centre buildouts, and sets the tone for Lambda's IPO pricing.