Blessings from Nvidia (NVDA.US)! Cloud service provider Lambda's pre-IPO financing valuation may break $4 billion

The Zhitong Finance App learned that, according to people familiar with the matter, the cloud computing infrastructure company Lambda, which received investment from Nvidia (NVDA.US), is negotiating a new round of financing with investors. The company's valuation may reach 4 to 5 billion US dollars, paving the way for subsequent initial public offerings (IPOs). The California-based company will go public as soon as possible or by the end of this year. It has now entered into initial contacts with a number of investment banks regarding IPO underwriting matters.

According to people familiar with the matter, the scale of this round of financing could reach hundreds of millions of dollars. According to financial data provider PitchBook, Lambda raised 480 million US dollars in Series D financing completed in February this year, with a valuation of 2.5 billion US dollars. The round of financing was led by Andra Capital and SGW of the Scott Hassan family office, an early investor from Google (GOOGL.US), followed by institutions and individuals such as Ark Investment and Nvidia headed by OpenAI co-founder Andrej Karpathy and “female stock goddess” Cathie Wood.

If Lambda rapidly advances the IPO after financing, it is expected to continue the current market boom in the field of artificial intelligence (AI) cloud computing. Previously, cloud computing provider CoreWeave Inc. (CRWV.US) went public at the end of March, and its stock price has more than doubled since it was issued. As an important partner of Nvidia, the Livingston, New Jersey-based company has attracted the attention of many fund managers seeking to lay out AI cloud infrastructure.

According to Lambda's official website, the company, which was founded in 2012, has deployed more than 1 million Nvidia graphics processing units (GPUs) in data centers in cities such as Atlanta, Los Angeles, Chicago, and Austin, and has offices in San Jose and San Francisco. The financing in February of this year was mainly used to expand the Lambda cloud platform. Currently, the company's cumulative financing amount has exceeded 860 million US dollars. It is worth noting that Bloomberg Beta, a venture capital agency under Bloomberg LP, the parent company of Bloomberg News, is also an investor in Lambda.

People familiar with the matter stressed that the relevant financing and IPO plans are still being discussed, and there may be variables in the specific terms. As the matter is confidential, these individuals requested anonymity. A Lambda spokesperson declined to comment on market rumors.