Lambda Raises $1 Billion Private Debt for Nvidia Chip Deal
Lambda has secured about $1 billion in private short-dated debt arranged by JPMorgan to purchase Nvidia GPUs that Microsoft will lease, according to Bloomberg. This follows a previous raise of $917 million two weeks ago, also involving a contract with Nvidia.
The deal highlights a unique structure where Lambda borrows against Microsoft’s commitment to lease the chips, rather than its own revenue. JPMorgan marketed the private placement to investors.
This is part of a broader trend: Lambda is also said to be in talks for as much as $3 billion ahead of a possible listing next year, contributing to over $400 billion of AI-related debt raised globally in 2026 alone.
The Amsterdam-based Nebius also adopted a similar strategy, raising $775 million against its own GPUs this year, backed by a $19.4 billion, five-year Microsoft contract.
This raises concerns about private credit’s opaque practices and limited liquidity, as highlighted by the European Central Bank and Bank for International Settlements. The latter warned that an AI investment collapse could have market-wide repercussions similar to the 2008 financial crisis.
Ultimately, the question remains: who bears the risk when these complex deals go south?