AI data center provider Lambda secures $1.5 billion in funding round led by TWG Global
Lambda, an AI data center provider, announced on Tuesday that it has successfully raised $1.5 billion in a funding round led by TWG Global. TWG Global is a relatively new investment firm with a $40 billion valuation, formed by billionaires Thomas Tull and Mark Walter, the former owner of Legendary Entertainment and CEO of Guggenheim Partners, respectively.
TWG Global manages a variety of assets owned by Tull and Walter, including Walter’s stakes in the Los Angeles Lakers and the new Cadillac F1 racing team. The firm also has a $15 billion fund dedicated to investing in AI, with support from Abu Dhabi’s Mubadala Capital. Previous investments by TWG Global include partnerships with Elon Musk’s xAI and Palantir to offer AI solutions to enterprises.
With this new funding, Lambda plans to expand its operations in the U.S. The company, known for its “AI factories,” competes with CoreWeave and provides AI infrastructure to hyperscaler clouds. Recently, Lambda secured a multi-billion dollar deal to supply Microsoft with AI infrastructure utilizing Nvidia GPUs, with Nvidia also being an investor in Lambda.
Earlier this year, Microsoft had a significant deal with CoreWeave, its largest customer in 2024. However, OpenAI later signed a $12 billion deal with CoreWeave in March, shaking up the market. Lambda had been rumored to be seeking additional funding at a valuation exceeding $4 billion, with talks of a potential IPO. Prior to this round, Lambda had raised $480 million in a Series D funding round in February, with an estimated valuation of $2.5 billion according to Pitchbook.
The $1.5 billion raise by Lambda surpasses previous expectations, although the exact valuation remains unconfirmed as Lambda declined to comment on the matter. The company’s rapid growth and strategic partnerships position it as a key player in the AI data center industry.
