Lambda has secured roughly $1 billion in short-term private debt arranged by JPMorgan Chase and marketed to private placement investors to buy Nvidia GPUs it will lease to Microsoft. The short-dated facility is earmarked for chips supporting Lambda’s existing Microsoft agreement and is structured around rapid deployment so lease revenue can service the loan through operating cash flow. The financing, which concluded this week, follows a $926 million senior secured term loan B completed earlier this month for Nvidia GB300 GPUs under a separate Nvidia contract and a $1 billion secured credit facility closed in May. The San Jose-based neocloud provider raised $1.5 billion in venture capital last November at a $5.43 billion post-money valuation and is reportedly discussing a pre-IPO round of as much as $3 billion that could position it for a public debut next year. Banks and technology companies have raised more than $400 billion in AI-related debt globally in 2026 so far, while attention centers on whether Lambda’s revenue growth can keep pace with its borrowing.