Nvidia-backed Lambda seeks up to $4 billion in final private round before planned 2027 IPO

Nvidia-backed cloud-computing company Lambda is raising up to $4 billion at a pre-money valuation of $14.5 billion in what would be its final funding round before a planned initial public offering, The Wall Street Journal reported on Tuesday, citing people familiar with the matter, according to Reuters.

Investment firms Blackstone and Coatue Management are leading the round. Lambda is aiming to go public in 2027, depending on execution and market conditions, according to a letter to the company’s limited partners reviewed by the Journal.

The same letter shows Lambda’s backlog of unfilled orders grew to $50 billion in September from $15 billion in June. As TechCrunch noted, much of that increase appears to stem from a $35 billion commitment by Anthropic, which signed a deal with Lambda in late August, meaning the valuation could lean heavily on Anthropic’s ability to keep paying.

Data center buildouts are largely funded by debt, and Lambda raised an additional $1 billion of debt last week, TechCrunch reported. With lenders growing choosier, raising more equity now could help set the tone for IPO pricing and give the company more capital before it faces the scrutiny of public markets.

If Lambda does list, it would join other Nvidia-backed neoclouds such as CoreWeave and Nebius, which depend on the health of their shares to fund data center expansion. British neocloud Nscale filed for an IPO last month. Lambda, Coatue and Blackstone did not immediately respond to requests for comment.