AI computing firm Lambda raises $320 million in fresh funding

By Thomson Reuters Feb 15, 2024 | 8:40 AM

(Reuters) – Lambda, an artificial intelligence computing firm, said on Thursday it has raised $320 million in a new funding round led by billionaire Thomas Tull’s US Innovative Technology to expand its AI cloud business.

Top technology companies are racing to build AI into their products and services. Startups catering to the surge in demand for AI chips and learning have been a bright spot in an otherwise subdued private funding market.

Public technology companies, including Nvidia and Microsoft, have also rallied strongly over the past 6 months on bets AI will transform all industries.

“This AI rollout is going to require a lot of Graphics Processing Unit (GPUs). This latest financing supports our mission to make GPU compute as ubiquitous as electricity,” said CEO and Co-founder Stephen Balaban.

Founded in 2012, Lambda’s hardware and private cloud business serves over 5,000 customers across industries including manufacturing, financial services, as well as the U.S. government.

The funding round also saw participation from B Capital, SK Telecom, funds and accounts advised by T. Rowe Price Associates, Crescent Cove and Mercato Partners, among others.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)