Lambda Targets $4 Billion Raise at $14.5 Billion Pre-Money Valuation Ahead of 2027 IPO, WSJ Reports

Lambda, the cloud computing company backed by NVDA, is seeking to raise $4 billion in what is described as its final funding round before going public, according to a Wall Street Journal report relayed by Reuters on October 6. The Journal cited people familiar with the matter and a letter to Lambda's limited partners that it reviewed. Reuters noted that Lambda did not immediately respond to a request for comment. Other outlets, including Yahoo Finance, carried the same account, so the coverage traces to a single original report.

According to that report, the round values Lambda at $14.5 billion pre-money, with Blackstone and Coatue Management leading. Nvidia is described as an existing backer, not the lead of this round. Lambda is aiming for an IPO in 2027, depending on execution and market conditions. Some outlets said the raise could be up to $4 billion, so the final size may differ from the target.

The letter also pointed to demand. Lambda's backlog of unfilled orders grew to $50 billion in September from $15 billion in June.

Lambda sits in the "neocloud" group of companies that buy GPUs and lease them to enterprises building large language models. Stocktwits, summarizing the Journal's report, said Lambda relies exclusively on Nvidia architecture, so its results may track Nvidia supply and demand conditions. The reports do not state how the proceeds would be used.

What to watch: whether the round closes at the reported size and valuation, how much of the backlog depends on a few large customers, and whether the IPO timetable holds as market conditions change.