Lambda, an Nvidia-backed AI cloud computing company and provider of rented chips and other infrastructure, is discussing up to $3 billion in financing at a valuation of as much as $12 billion or more. The fundraising could help pave the way for a public listing next year, while earlier planning targeted an IPO in the second half of 2026. The company is also negotiating at least $350 million in pre-IPO financing, potentially through convertible notes or mezzanine rounds, with Mubadala Capital reportedly in talks to lead the financing at a discount to the anticipated IPO price. Lambda raised $480 million in Series D funding in February 2025 and more than $1.5 billion in a Series E round led by TWG Global and US Innovative Technology Fund in November 2025, valuing it at approximately $5.9 billion. Since its 2012 founding, Lambda has raised roughly $2.36 billion in total equity funding and secured a $917 million to $926 million leveraged loan for GPU-related infrastructure purchases. The company competes with CoreWeave, while Nvidia is both a backer and key technology partner. SGW and B Capital are among its other investors, and Morgan Stanley and J.P. Morgan are assisting with IPO preparations.