AI data center provider Lambda announced on Tuesday that it raised one point five billion dollars in a funding round. The round was led by TWG Global, a relatively new forty billion dollar investment firm. TWG Global was formed by billionaires Thomas Tull, the former owner of Legendary Entertainment, and Guggenheim Partners founder and CEO Mark Walter. TWG holds a variety of the billionaires’ assets, including Walter’s stakes in the Los Angeles Lakers and the new Cadillac F1 racing team. The firm also has a fifteen billion dollar fund to invest in artificial intelligence, which is anchored by Abu Dhabi’s Mubadala Capital.
TWG previously invested in a partnership with Elon Musk’s xAI and Palantir to sell AI agents to enterprises. Now it is backing Lambda, which operates a number of US-based AI data centers. Lambda is a competitor to CoreWeave, although it also sells its so-called AI factories to hyperscaler clouds.
Earlier this month, Lambda announced a multi-billion dollar deal to supply Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs. Nvidia is also an investor in Lambda. This deal is notable because Microsoft had a similar arrangement with CoreWeave, having bought about one billion dollars worth of services from CoreWeave in 2024, making Microsoft its largest customer by a wide margin. Then, in March, OpenAI signed a twelve billion dollar deal with CoreWeave.
Meanwhile, deal watchers have been talking for months about Lambda looking to raise hundreds of millions of dollars at a valuation north of four billion dollars. There was also talk of a potential initial public offering. Prior to this new funding, Lambda raised a four hundred eighty million dollar Series D in February, with an estimated valuation of two point five billion dollars, according to Pitchbook.
Lambda’s new one point five billion dollar raise far outstrips those earlier whispers of what it was seeking. Whether its valuation also soared remains unconfirmed, as Lambda declined to comment on that point.