AI cloud provider Lambda is reportedly in talks to raise up to $3 billion in a new funding round, positioning itself for a potential initial public offering (IPO) as early as next year. The move underscores the intensifying capital race among GPU-cloud startups seeking to scale amid surging demand for AI compute capacity.
According to Bloomberg, citing sources familiar with the matter, the company is pursuing the funding ahead of a possible public listing in 2027. The round could value Lambda at $12 billion or more, though negotiations remain ongoing and terms could still change. The report also indicated that Lambda has already received multiple term sheets from investors, reflecting strong market interest in the AI infrastructure sector.
Lambda is anticipating revenue exceeding $1.5 billion this year, a figure that would mark significant growth for the company, which was founded in 2012 and offers GPU-based cloud compute services. The company currently operates 15 data centers across the United States, according to its website.
The potential new round follows a series of substantial capital raises for Lambda. In November 2025, the company secured $1.5 billion in a funding round led by TWG Global, with participation from Andra Capital, SGW, ARK Invest, Nvidia, and others. Earlier this month, Lambda closed a $926 million senior secured loan facility, and it obtained a $1 billion credit facility in May 2026. Previously, reports had indicated the company was seeking $350 million in a pre-IPO round.
The funding push comes amid a wave of IPO activity across the AI and data center landscape. UK-based competitor Nscale was reported earlier this week to be seeking up to $3 billion in its own US IPO, which could take place as soon as September 2026. CoreWeave, another rival, completed its IPO in March 2025. Other companies that have recently filed for public offerings include Anthropic, Csquare, and SpaceX, while data center operators Vantage, CyrusOne, and DayOne are all reported to be planning their own listings.
The rapid succession of fundraising and IPO preparations highlights the scale of capital required to build and operate AI cloud infrastructure. As demand for GPU compute continues to outpace supply, companies like Lambda are racing to expand capacity while investors remain eager to back players with strong revenue traction and growth potential.
DCD has contacted Lambda for comment.