AI data center provider Lambda raises whopping $1.5B after multibillion-dollar Microsoft deal (techcrunch.com)

Lambda, a U.S. AI data-center operator, announced a $1.5 billion financing round led by TWG Global, the investment vehicle of Thomas Tull and Mark Walter. TWG — backed by a $15 billion AI fund anchored by Mubadala Capital and known for deals with xAI/Palantir — is betting on Lambda after the company inked a multibillion-dollar supply pact with Microsoft to provide “AI factories” powered by tens of thousands of NVIDIA GPUs (NVIDIA is also an investor). The raise dwarf’s Lambda’s February Series D ($480M) and outstrips prior rumors of a smaller raise or IPO; the company declined to confirm any new valuation. For the AI/ML community, this is a major signal that capital markets still favor specialized infrastructure plays as demand for GPU capacity explodes. Technically, the funding will likely accelerate Lambda’s buildout of GPU-dense data centers and its ability to service hyperscalers and enterprise customers, intensifying competition with CoreWeave — which itself has large Microsoft and OpenAI contracts. The deal underscores how access to large pools of NVIDIA GPUs and deep-pocketed strategic investors is becoming a key competitive moat, with implications for pricing, supplier concentration, and how quickly models and AI services can be provisioned at scale.