Neocloud Lambda raises $1B in private debt to purchase Nvidia chips for Microsoft
Neocloud Lambda, an AI cloud company that leases computing hardware, has secured a $1 billion short-term loan to buy more of Nvidia's AI chips. These will be leased primarily to Microsoft under existing contracts. The deal was arranged by JPMorgan Chase and reflects the company’s strategy to rapidly deploy infrastructure in order to generate revenue quickly enough to repay its debt. This is part of Lambda’s broader financing approach, which includes a $1 billion secured credit facility from May 2026 and another recent $926 million loan for Nvidia's GB300 GPUs. The company is also reportedly seeking a $3 billion pre-IPO funding round following its November 2025 venture capital raise of $1.5 billion at a valuation of $5.43 billion. The move highlights the growing trend in AI infrastructure financing, with global banks and tech firms raising over $400 billion in debt for AI-related projects so far this year.
Topics: AI debt financing GPU leasing Nvidia chips