Cloud service provider Lambda is in the process of securing up to $4 billion at a pre-money valuation of $14.5 billion, potentially representing its final private funding round prior to a planned initial public offering (IPO) in 2027, according to hinews. The funding round is being spearheaded by Coatue Management and Blackstone.
A letter to investors, which has been reviewed by the publication, indicates that Lambda’s backlog surged from $15 billion in June to $50 billion in September. While this substantial increase may suggest a robust rise in demand, a significant portion appears to stem from a $35 billion commitment from a single entity: Anthropic, which entered into an agreement with Lambda in late August.
This development implies that Lambda’s valuation, which has seen considerable growth since its funding round in 2025, may be heavily reliant on Anthropic’s continued financial support. Nevertheless, given the scarcity of reliable GPU capacity, investors remain inclined to support companies that offer such resources, particularly those with substantial contracts with prominent AI laboratories.
For emerging cloud providers like Lambda, the challenge lies not in demand but in the costs associated with fulfilling it. The construction of data centers is primarily financed through debt—of which Lambda recently secured an additional $1 billion last week—and lenders are becoming increasingly selective regarding whom they extend credit to and under what conditions. Lambda’s choice to raise additional funds at this juncture not only influences its IPO pricing strategy but also provides access to more capital ahead of the heightened scrutiny that accompanies public market entry.
Should Lambda proceed with its IPO—initially anticipated for this year but postponed due to market volatility—it will join other Nvidia-backed cloud providers, such as CoreWeave and Nebius, which now rely on their stock performance to finance their data center expansions. Additionally, British cloud provider Nscale filed for an IPO last month and is expected to commence trading shortly.
Lambda, Coatue, and Blackstone have not yet responded to requests for comment.
