Lambda secured a $1 billion private debt facility to acquire Nvidia GPUs, which will subsequently be leased to Microsoft.

Neocloud Lambda has reportedly secured $1 billion in private short-term debt to purchase Nvidia GPUs. As reported by Bloomberg, the company will lease the chips to Microsoft.

The financing was organized by JPMorgan Chase & Co. and offered to private placement investors. The bank declined to comment to Bloomberg. DCD has contacted Lambda for comment.

Microsoft and Lambda operate under an ongoing agreement under which Microsoft leases access to Lambda’s GPU fleet. In November 2025, the partnership was expanded with a “multi-billion-dollar” agreement granting Microsoft access to tens of thousands of Nvidia GB300 NBL72 systems via Lambda’s platform.

This private debt offering follows shortly after Lambda secured a $926 million senior secured loan facility, which the company said would be used to support the expansion of its GPU cloud platform. Last week, reports emerged that the neocloud is seeking to raise as much as $3 billion ahead of plans for an initial public offering (IPO), which is expected to take place next year.

Lambda previously secured a $1 billion credit facility in May 2026. Founded in 2012, the company currently operates out of 15 data centers across the US. Earlier this week, it reportedly signed a $35 billion capacity agreement with AI lab Anthropic.