Lambda in talks to raise $3B for potential public listing

Lambda, the GPU cloud computing company, is in discussions to raise up to $3 billion in new funding as it eyes a public listing. The company is targeting an IPO in the second half of 2026.

Lambda’s recent capital-raising trajectory reads like a company trying to build a rocket while it’s already in flight. In February 2025, the company raised $480 million in Series D funding to expand its AI cloud platform. By November 2025, it had closed a Series E round of over $1.5 billion, led by TWG Global and US Innovative Technology Fund. That round valued the company at approximately $5.9 billion.

Now Lambda is negotiating pre-IPO financing of at least $350 million, potentially structured as convertible notes or mezzanine rounds. Abu Dhabi sovereign wealth vehicle Mubadala Capital is reportedly in talks to lead that round at a discount to the anticipated IPO price.

Since its founding in 2012, Lambda has raised roughly $2.36 billion in total equity funding. The company also secured a leveraged loan in the range of $917 million to $926 million for GPU-related infrastructure purchases.

Lambda competes in a space alongside CoreWeave, another GPU cloud provider that went public earlier this year in one of the more closely watched tech IPOs of 2025. Lambda counts Nvidia as both a backer and a key technology partner. Additional investors include SGW and B Capital, among other investment firms.

The company has hired Morgan Stanley and J.P. Morgan to assist with its IPO preparations.

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