Nvidia-backed Lambda is in talks for up to $3bn in pre-IPO financing at a valuation of $12bn or more, ahead of a listing next year.

Nvidia is arranging over $500 billion in AI infrastructure credit alongside Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR, raising concerns about circular financing. The chipmaker may secure up to $125 billion of the total itself. A recent $917 million credit facility with Lambda demonstrates how the system works: customers lacking liquidity can access capital arranged through the consortium to purchase Nvidia hardware. CEO Jensen Huang aims to transform the company's graphics chips into an "investable asset class". Critics warn of an "Ouroboros dilemma" — when manufacturers arrange loans for customers to buy their own products, creating a closed loop vulnerable to collapse if actual AI service demand lags infrastructure buildout. Nvidia shares closed at €188.50 on Monday, down 2.67%. The company reports second-quarter fiscal 2027 earnings on 26 August.

Lambda, an AI cloud infrastructure company, has closed a $1 billion syndicated senior secured credit facility arranged by J.P. Morgan. This represents a nearly fourfold increase from the $275 million facility Lambda established in August 2025. The capital will fund deployment of next-generation Nvidia AI accelerator servers and data centre expansion. Lambda previously secured a $500 million loan in 2024 collateralised by Nvidia chips. The company raised $480 million in a Series D funding round in February 2025. Lambda has also established a multibillion-dollar commercial partnership with Microsoft focused on building AI infrastructure. Founded in 2012, Lambda now serves tens of thousands of customers with GPU clusters built for AI training and inference workloads.