Lambda inks $1B private debt for Nvidia chip deal
Lambda has raised about $1B of private short-dated debt arranged by JPMorgan to buy Nvidia GPUs that Microsoft will lease, according to Bloomberg. The same structure funds Nebius, which borrowed $775M against its own chips and holds a five-year Microsoft contract worth $19.4B.
Lambda has raised about $1B of private debt to buy Nvidia chips that Microsoft will lease. JPMorgan arranged the short-dated deal and marketed it to private placement investors, Bloomberg reported.
The counterparty is the part that matters. Lambda is borrowing against Microsoft’s willingness to keep paying, not against its own revenue. Microsoft gets the compute without the debt.
It is the second such raise this month. Lambda borrowed $917M two weeks ago against a contract with Nvidia, which is simultaneously its investor, its supplier and a customer.
TNW has not independently verified the new terms. Bloomberg attributed them to people who were not authorised to speak...
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