AI data center provider Lambda announced Tuesday that it has raised $1.5 billion in a round led by TWG Global, and a relatively recent $40 billion investment firm founded by billionaires Thomas Tull, former owner of Legendary Entertainment, and Guggenheim Partners founder and CEO Mark Walter.
TWG owns a number of billionaire assets, including Walter’s stake in the Los Angeles Lakers and the recent Cadillac F1 racing team. The company also has a $15 billion fund to speculate in artificial intelligence Mubadala capital in Abu Dhabi. TWG has previously invested in a partnership with Elon Musk xAI and Palantir will sell AI agents to enterprises.
It now supports Lambda, which powers many US AI data centers. Lambda is a competitor to CoreWeave, although it also sells its “AI factories” to hyperscale clouds. Earlier this month, Lambda announced a multi-billion dollar deal to supply Microsoft with AI infrastructure using tens of 1000’s of Nvidia GPUs. (Nvidia is also an investor in Lambda.)
Note that Microsoft had a similar deal with CoreWeave and bought about $1 billion value of services from the company in 2024, which was its largest customer last yr. OpenAI then stepped in and signed a $12 billion deal with CoreWeave in March.
Meanwhile, deal observers have been talking for months that Lambda wants to boost a whole lot of hundreds of thousands of dollars with a valuation of roughly $4 billion. There was also talk of an IPO. According to PitchBook, Lambda previously raised $480 million in Series D in February, at an estimated valuation of $2.5 billion.
Lambda’s $1.5 billion raise far exceeds previous rumors about what he’s searching for. Whether its valuation has also increased, we cannot confirm, and Lambda declined to comment on the matter.