AI Compute Startup Lambda Hits $1.5B Valuation After Massive $320M Raise

Nvidia’s AI success is definitely having a trickle-down effect.

Lambda hit unicorn status after a $320 million Series C at a $1.5 billion valuation. The company offers cloud computing services and hardware for training artificial intelligence software. The startup is a provider of Nvidia’s latest GPUs, which are highly sought after by AI developers.

The round was led by Thomas Tull’s US Innovative Technology Fund with participation from new investors B Capital, SK Telecom, funds and accounts advised by T. Rowe Price Associates, and existing investors Crescent Cove, Mercato Partners, 1517 Fund, Bloomberg Beta and Gradient Ventures, among others

The San Jose, California-based startup’s customer list includes Microsoft and Amazon.

The round marks the largest by an AI startup this year, per Crunchbase data. In general, the sector seems to be picking up after a slow start to the year with AI startups now raking in more than $3 billion for the current calendar year.

Lambda’s round is not the only large round raised by a cloud computing service in the AI space. Last May, CoreWeave, an AI cloud infrastructure company, raised $200 million in a Series B extension funding round co-led by Magnetar Capital that valued it at $2 billion. That funding came just weeks after CoreWeave raised $221 million.

Lambda’s round also is one of at least 10 rounds this week that have hit or topped nine figures.

More Nvidia AI

Another startup related to Nvidia also made news Thursday. The Information reported Together AI, which also helps developers access Nvidia server chips to train AI software, is raising more than $100 million at over $1 billion. Salesforce Ventures 1 is expected to lead the round, with participation from Coatue.

The round would more than double its valuation from its $102.5 million raise last November.