Lambda secures £380 million to expand AI cloud platform
Written by Rebecca Uffindell Thu 20 Feb 2025
AI infrastructure provider, Lambda, has raised £380 million ($480 million) in a Series D funding round, bringing its total equity capital to £684 million ($863 million).
The investment, co-led by Andra Capital and SGW, includes contributions from new investors like Andrej Karpathy, ARK Invest, Fincadia Advisors, G Squared, In-Q-Tel (IQT), KHK & Partners, and NVIDIA. Existing backers, including 1517, Crescent Cove, and USIT, also participated. Additionally, strategic investments came from Pegatron, Supermicro, Wistron, and Wiwynn.
Lambda provides cloud infrastructure and software tools for AI model training, fine-tuning, and inference. The company has expanded rapidly since its last funding round in April, achieving SOC 2 Type II compliance for enhanced security in its cloud environment. It also launched the first self-serve, on-demand GPU clusters for AI model training, known as 1-Click Clusters. More recently, Lambda introduced the Lambda Inference API and Lambda Chat AI Assistant, offering hosted access to open-source models like DeepSeek R1.
CEO and Co-founder at Lambda, Stephen Balaban, said AI is fundamentally restructuring the economy and Lambda is investing billions of dollars to build the software platform and infrastructure powering AI.
Putting AI ‘into the Hands of the Many’
“We build software tools that delight the AI Developer, and a platform that truly puts AI into the hands of the many. This investment will accelerate the expansion of the Lambda Cloud platform, Lambda Model Inference API, and Lambda Chat AI Assistant,” said Balaban.
Lambda said the funding reflects the ongoing demand for scalable AI infrastructure as companies look for efficient ways to train and deploy machine learning models. Managing Partner at Andra Capital, Paul Tuan, highlighted Lambda’s role in enabling AI innovation.
“In a landscape where speed and scalability are paramount, Lambda’s deep understanding of AI hardware and software provides developers with critical infrastructure to stay ahead of the curve,” said Tuan.
JPMorgan acted as the private placement agent for the financing.
Written by Rebecca Uffindell Thu 20 Feb 2025