Lambda fundingStephen Balaban CEO and Co-founder of Lambda / Image Credit: Lambda

Lambda, a leading GPU cloud company based in San Jose, California, announced today the successful completion of its Series C funding round, securing a substantial $320 million in investment. The round was spearheaded by Thomas Tull’s US Innovative Technology, showcasing the company’s continuous growth and innovation in the rapidly evolving field of artificial intelligence (AI). With this latest funding, Lambda’s valuation has soared beyond $1.5 billion.

The funding round saw enthusiastic participation from a diverse group of investors, including new contributors such as B Capital and SK Telecom, along with the continued support of existing investors, including funds and accounts advised by T. Rowe Price Associates, Inc., Crescent Cove, Mercato Partners, 1517 Fund, Bloomberg Beta, and Gradient Ventures.

Lambda, founded in 2012, has become a prominent player in the AI compute platform arena, catering to developers throughout the entire AI development lifecycle. The company’s solutions empower AI engineers to build, test, and deploy AI products at scale, offering a comprehensive portfolio ranging from on-prem GPU hardware to hosted GPUs in the cloud. Boasting over 100,000 customer sign-ups on Lambda Cloud, the company has established itself as an early provider of NVIDIA H100 Tensor Core GPUs.

The strategic vision for the allocated funds involves a significant expansion of Lambda’s AI cloud business, including the enhancement of on-demand and reserved cloud offerings. This move aligns with Lambda’s commitment to staying at the forefront of AI infrastructure development.

Lambda’s CEO and Co-founder, Stephen Balaban, emphasized the transformative role of AI in various sectors: “AI is fundamentally restructuring science, commerce, and industry. Over the next 10 years, every human endeavor will be augmented by the integration of LLMs and generative AI. This AI rollout is going to require a lot of GPUs. This latest financing supports our mission to make GPU compute as ubiquitous as electricity.”

In addition to its cloud services, Lambda provides hardware solutions to over 5,000 customers across diverse industries, including manufacturing, healthcare, pharmaceuticals, financial services, and the U.S. government. The company’s AI Cloud has gained traction among prominent organizations such as Anyscale, Rakuten, The AI Institute, and multiple enterprises with over a trillion dollars of market capitalization.

Thomas Tull, Chairman of US Innovative Technology, expressed confidence in Lambda’s role in advancing AI capabilities: “Investing in strong infrastructure to power and disseminate cutting-edge technology is imperative to ensure the U.S. remains a global leader in AI advancement. A long-time pioneer in deep learning, Lambda offers an unmatched combination of hardware and cloud infrastructure alongside connective software and tools that enable AI developers to build with efficiency and speed. We believe Lambda‚Äôs platform will serve as the foundation for the AI hyperscalers of tomorrow.”

Lambda’s commitment to innovation, coupled with the robust support from investors, positions the company for continued success in shaping the future of AI infrastructure and cloud services.

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