Cloud computing company Lambda has significantly deepened its relationship with Microsoft through a sizable AI infrastructure agreement. The Nvidia-backed firm announced a multibillion-dollar deal with Microsoft to deploy tens of thousands of Nvidia GPUs. The exact financial size of the deal was not publicly disclosed.
Some of the graphics processing units will be Nvidia GB300 NVL72 systems. These systems were announced earlier this year and began shipping in the last few months. Stephen Balaban, the CEO of Lambda, commented on the collaboration, stating it is great to watch the teams working together to deploy massive AI supercomputers. He noted that the companies have been working together for more than eight years and called this new agreement a phenomenal next step in their relationship.
Microsoft had previously opened its first Nvidia GB300 NVL72 cluster in October. Companies like Lambda, which was founded in 2012 before the current AI boom and has raised 1.7 billion dollars in venture funding, are experiencing strong demand as businesses continue to invest heavily in AI infrastructure and compute.
This announcement follows another major deal from the same day, where Microsoft announced a 9.7 billion dollar agreement for AI cloud capacity with IREN, an Australian data center business. Also earlier that day, OpenAI announced it had struck a 38 billion dollar cloud computing deal with Amazon to buy cloud services over the next seven years. The AI company had also reportedly inked a 300 billion dollar deal with Oracle for cloud compute in September.
In other industry news, AWS reported it was on track for its best year in terms of operating income in three years, according to its recent third-quarter earnings. The Amazon department has collected 33 billion dollars in sales so far this year. Andy Jassy, the President and CEO of Amazon, stated that AWS is growing at a pace not seen since 2022, with strong demand in AI and core infrastructure driving the acceleration.
TechCrunch has reached out to Lambda for more information regarding the structure and size of its deal with Microsoft.