Lambda Targets $14.5 Billion Valuation in Final Pre

Lambda Targets $14.5 Billion Valuation in Final Pre-IPO Round

Cloud computing company Lambda is raising as much as $4 billion in a funding round that will value the company at $14.5 billion, excluding the money raised, the Wall Street Journal reported Tuesday (Oct. 6), citing unnamed sources.

Lambda is raising this funding in a final round before a planned initial public offering (IPO) that the company’s management aims to launch in 2027, subject to execution and market conditions, according to the report.

A Lambda spokesperson declined the WSJ’s invitation to comment on these claims, per the report.

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PYMNTS reported last November that Lambda raised more than $1.5 billion to expand its AI cloud business.

Tuesday’s WSJ report said that round valued Lambda at $5.9 billion, post-money. The report cited valuation estimates by venture capital platform Forge Global.

The PYMNTS reported said that at the time of the November funding round, Lambda was shifting its strategy by building and owning its own data centers rather than renting capacity from larger cloud providers. Lambda said it planned to grow its footprint of GPU clusters and invest in the physical infrastructure needed to support customers building large models and agent-driven applications.

When Lambda closed a $275 million senior secured credit facility led and arranged by JPMorgan in August 2025, the startup said it planned to use the financing to build more AI data centers and expand its fleet of GPU servers to meet growing AI demand from enterprises and other customers.

“This financing strengthens Lambda’s capital structure and supports our long-term vision of becoming the default choice for building gigawatt-scale AI factories for superintelligence,” Lambda Chief Financial Officer Peter Seibold said at the time in a press release.

JPMorganChase Chairman and CEO Jamie Dimon told CNBC in September that AI hyperscalers could spend $1 trillion next year. That figure would be up from the $700 billion the hyperscaler ecosystem is spending this year and the $300 billion it spent last year, Dimon said.

Nvidia Founder and CEO Jensen Huang said during a May earnings call that hyperscaler capital expenditure on AI alone is forecast to exceed $1 trillion in 2027 and that AI infrastructure spending could reach $3 trillion to $4 trillion annually by the end of the decade.