AI data center provider Lambda announced on Tuesday that it has 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. The firm holds a variety of the billionaires’ assets, including Walter’s stakes in the Los Angeles Lakers and the new Cadillac Formula One racing team. TWG Global also has a fifteen billion dollar fund, anchored by Abu Dhabi’s Mubadala Capital, dedicated to investing in artificial intelligence.
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 AI data centers in the United States. Lambda is a competitor to CoreWeave, although it also sells its AI factories to hyperscaler clouds.
Earlier this month, Lambda announced a multibillion-dollar deal to supply Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs. Nvidia is also an investor in Lambda. It is noteworthy that Microsoft had a similar deal with CoreWeave and had bought about one billion dollars worth of services from that company in 2024, making it CoreWeave’s largest customer by a wide margin. Then, in March, OpenAI signed a twelve billion dollar deal with CoreWeave.
For months, deal watchers have been discussing Lambda’s efforts to raise hundreds of millions of dollars at a valuation exceeding four billion dollars. There was also talk of the company preparing for an initial public offering. Prior to this new funding, Lambda raised a four hundred eighty million dollar Series D in February, which PitchBook estimated valued the company at two point five billion dollars. 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.