Lambda Secures $1 Billion GPU Loan

AI cloud company Lambda said it has secured its first delayed draw term loan at over $1 billion to purchase more than 30,000 Nvidia graphics processing units. The fixed-rate facility carries an interest rate of 6.78%.

Privately held Lambda said in an announcement late on Thursday the facility received investment-grade credit ratings from Morningstar DBRS and Moody’s. The company said it has three confirmed projects with two unnamed investment-grade clients. Neoclouds including CoreWeave and Crusoe have increasingly turned to DDTLs to finance GPUs, usually backed by contracts with investment-grade customers.

Lambda’s DDTL will finance Nvidia GB300 and VR200 GPUs at data centers in Seattle, Kansas City and Dallas. This deal marks the second time Lambda has raised an institutional credit facility to fund its AI infrastructure buildout, the company said, following the closing of a $926 million senior secured term loan B in late August.