Artificial intelligence is restructuring the global economy, redefining how humans interact with computers, and accelerating scientific progress. AI is the foundation of a new industrial era and a new era of computing.
Lambda’s $480M Funding: Building a Hyperscaler Cloud for AI Developers & End-Users
Today, we’re excited to announce a $480M Series D co-led by Andra Capital and SGW with participation from new investors Andrej Karpathy, ARK Invest, Fincadia Advisors, G Squared, In-Q-Tel (IQT), KHK & Partners, NVIDIA, and others. We welcomed strategic investment from Pegatron, Supermicro, Wistron and Wiwynn, and additional participation from many existing investors including 1517, Crescent Cove, and USIT.
This round will fuel the expansion of Lambda’s Cloud Platform. We’re scaling both infrastructure and software, enabling AI developers to train, fine-tune, and deploy models faster and easier than ever. We’ll build more software tools that delight AI Developers and deploy more GPUs to meet the massive customer demand. We’ll also continue to develop Lambda Chat, which hosts DeepSeek-R1 and many other open source models.
A Year of Open Source and Reasoning
Over the last twelve months, AI has become more democratized because of two forces: open source and LLM reasoning. We saw dozens of high-quality open models, including Llama, DeepSeek-R1, and Mochi 1. These models put state-of-the-art AI in the hands of every person, company, and research institution. Open source accelerates progress across the field.
The second force is reasoning—where a model’s output quality can be improved using more compute at inference time. We’ve moved away from the need to scale already expensive training runs. The simple math is this: if you want to 100x the amount of compute required to train Llama (about $120M), you will need to increase your spend to around $12 billion. If you want 100x the amount of compute required to inference Llama, your cost may go from three cents to $3—a much more reasonable proposition.
Open-source reasoning models allow anybody on the planet to contribute to the progress of AI and no company is better positioned than Lambda to provide that compute.
The AI revolution is in full swing, and Lambda is here to power it. We envision a future where the impact of AI is so substantial that it’s used daily by every man, woman, and child on the planet. A world of one person, one GPU. Let’s build it together.
Press contacts: pr@lambdal.com
