AI data center provider Lambda raises whopping $1.5B after multibillion-dollar Microsoft deal

Core Insights - Lambda, an AI data center provider, raised $1.5 billion in a funding round led by TWG Global, a new investment firm with a valuation of $40 billion [1] - TWG Global manages various assets, including stakes in the Los Angeles Lakers and a $15 billion fund for AI investments, backed by Abu Dhabi's Mubadala Capital [2] - Lambda operates multiple AI data centers in the U.S. and competes with CoreWeave, while also supplying AI infrastructure to Microsoft using tens of thousands of Nvidia GPUs [3] - Prior to this funding, Lambda raised $480 million in February at a valuation of $2.5 billion, indicating significant growth in its valuation with the latest funding round [4] Company Developments - The recent $1.5 billion funding significantly exceeds earlier expectations of raising hundreds of millions at a valuation above $4 billion [4] - There are discussions about a potential IPO for Lambda, reflecting its growing prominence in the AI infrastructure market [4] Market Context - The competitive landscape includes CoreWeave, which had a $1 billion service deal with Microsoft in 2024 and a $12 billion deal with OpenAI in March [3] - The involvement of Nvidia as an investor in Lambda highlights the strategic partnerships within the AI sector [3]