Lambda secured $1.5 Billion led by TWG Global after landing a multibillion-dollar Microsoft deal, boosting its position in the U.S. AI infrastructure.
AI data center provider Lambda has raised $1.5 billion in a funding round led by TWG Global, marking one of the largest recent private investments in U.S. Artificial Intelligence (AI), infrastructure. The announcement on Tuesday November 18, 2025, follows Lambda’s multibillion-dollar deal with Microsoft to supply tens of thousands of Nvidia GPUs for AI workloads.
TWG Global, a relatively new $40 billion investment firm, is backed by billionaires Thomas Tull, former owner of Legendary Entertainment, and Guggenheim Partners founder Mark Walter. The firm manages a range of high-profile assets, including Walter’s stakes in the Los Angeles Lakers and the Cadillac Formula 1 team, and has a $15 billion AI-focused fund anchored by Abu Dhabi’s Mubadala Capital. TWG has previously invested in partnerships with Elon Musk’s xAI and Palantir to sell AI solutions to enterprises.
Lambda operates multiple AI data centers across the United States and competes with companies such as CoreWeave, though it also sells its “AI factories” to hyperscaler cloud providers. The Microsoft agreement represents a significant milestone for Lambda, which now provides infrastructure for some of the largest generative AI workloads in the U.S.
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Industry observers note that Microsoft has a history of sourcing large-scale AI infrastructure from CoreWeave, including a $1 billion deal in 2024, followed by OpenAI’s $12 billion agreement with CoreWeave earlier this year. Lambda’s new arrangement signals growing diversification in the AI cloud market as demand for GPU-intensive computing surges.
Prior to Tuesday’s funding round, Lambda had raised $480 million in a Series D round in February 2025, at an estimated $2.5 billion valuation. The latest $1.5 billion injection significantly exceeds earlier reports that the company was seeking a few hundred million dollars and has intensified speculation about a potential IPO, though Lambda declined to comment on its current valuation.
The fresh capital positions Lambda to expand its U.S. AI infrastructure, scale operations, and compete more aggressively in the fast-growing AI data center sector. With Nvidia also an investor in the company, Lambda benefits from deep integration with one of the world’s leading GPU providers, enhancing its appeal to enterprise customers.
Analysts say the move underscores the increasing competition among AI infrastructure providers and highlights the accelerating pace of investment in companies that support the generative AI ecosystem, as enterprises scramble to deploy AI at scale.