Neocloud Lambda has secured a $1 billion debt facility specifically earmarked for additional GPU acquisitions.

Lambda, an AI cloud company that purchases computing chips and rents them to businesses, has raised $1 billion in private, short-dated debt to acquire Nvidia’s AI chips for leasing to Microsoft, Bloomberg reports.

The deal, arranged by JP Morgan Chase according to Bloomberg, signals that Lambda is betting it can rapidly deploy the hardware and begin generating revenue, allowing it to repay the debt quickly using those incoming funds.

This marks the latest in a series of loans Lambda has used to fund GPU infrastructure for specific customers. In May, it closed a $1 billion secured credit facility, and this week it announced the closing of a $926 million loan to fund Nvidia GB300 GPUs—one of Nvidia’s newest chip models—for a deployment it is under contract to provide to Nvidia.

The $1 billion private debt deal comes as Lambda is reportedly in talks for a $3 billion pre-IPO round. Per PitchBook data, the company raised $1.5 billion in venture capital last November at a $5.43 billion post-money valuation.

Lambda is not the only entity relying on debt to fund the AI boom. According to data compiled by Bloomberg, banks and tech companies have raised over $400 billion in AI-related debt globally in 2026 so far.