Lambda seeks $3 billion in pre-IPO funding to expand GPU capacity

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

The capital is intended to expand GPU capacities and AI cloud platform infrastructure. Lambda, which counts NVIDIA as both a backer and a key technology partner, aims to provide ready-to-use computing power for research and corporate AI workloads.

Mubadala Capital, an Abu Dhabi-based sovereign wealth vehicle, is reportedly in talks to lead the current financing round. Lambda has previously secured significant funding, including a $1.5 billion Series E round in late 2025, which valued the company at approximately $5.9 billion. To assist with IPO preparations, the company has engaged Morgan Stanley and J.P. Morgan.