Lambda seeks $4 billion in final round before 2027 IPO

AI cloud provider Lambda is raising up to $4 billion at a $14.5 billion pre-money valuation, the Wall Street Journal reported.
Blackstone and Coatue Management are leading the round. It could be the company's last private financing before a planned 2027 IPO.
A letter to investors showed Lambda's backlog jumped from about $15 billion in June to $50 billion in September. Much of the jump comes from a roughly $35 billion commitment Anthropic signed in late August.
Lambda is one of the "neoclouds" selling GPU-rich computing to AI labs. The company also raised $1 billion in debt last week to fund data-centre buildouts.
The company has reshuffled its leadership for public markets. Co-founder Stephen Balaban moved to chief technology officer, with veteran executive Michel Combes taking over as CEO.
Investors are betting on neoclouds as AI labs lock in huge long-term compute deals. The round is expected to close before the end of the year.
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