By Bailey Lipschultz and Ed Ludlow, Bloomberg
Lambda Inc., a cloud infrastructure firm which counts Nvidia Corp. among its backers, is in talks with investors about a funding round that could value the company at $4 billion to $5 billion ahead of a potential initial public offering, according to people familiar with the matter.
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The San Jose-based company could go public as soon as the end of the year, and has had preliminary discussions with bankers to potentially lead the IPO, the people said.
The funding round is likely to be in the hundreds of millions of dollars, one of the people said.
The new financing would come just months after Lambda’s Series D round in February brought in $480 million at a $2.5 billion valuation, according to data provider PitchBook.
The deal was led by Andra Capital and SGW — the family office of early Google investor Scott Hassan — with participation from OpenAI co-founder Andrej Karpathy, Cathie Wood’s ARK Invest, Nvidia and others.
Deliberations are ongoing and details of both the funding round and the IPO may change, said the people, who asked not to be identified because the information is private. A spokesperson for Lambda declined to comment.
A round quickly followed by an IPO would look to build on the enthusiasm that’s powered cloud-computing provider CoreWeave Inc.’s shares to more than double from a late March debut. Livingston, New Jersey-based CoreWeave is a close partner of Nvidia, and has drawn interest from money managers seeking exposure to AI cloud infrastructure.
Founded in 2012, Lambda has more than 1 million Nvidia graphics processing units across data centers in cities including Atlanta, Los Angeles, Chicago and Austin, according to the company’s website. It has offices in San Jose and San Francisco.
Lambda’s February round was raised to fuel the expansion of its Lambda Cloud Platform. The company has raised more than $860 million in funding, its website shows.
Bloomberg Beta, the venture capital arm of Bloomberg News parent Bloomberg LP, has also invested in Lambda.
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