Nvidia-Backed Cloud Provider Lambda in Talks to Raise $350 Million Ahead of IPO

Lambda, an upstart cloud provider that rents out Nvidia AI chips—and whose biggest customer was recently Nvidia itself—is trying to raise at least $350 million before a potential initial public offering this year, according to a person familiar with the discussions.

Mubadala Capital, which manages money for the United Arab Emirates government and other investors, is in talks to lead the funding round, which is structured to sell stock to investors at about a 20% discount to the price at which Lambda would sell stock in an IPO, the person said. It would be the latest in a string of AI-related deals by government-backed funds from the UAE.