Lambda, a San Francisco-based AI cloud platform company, has secured $480 million in Series D funding. The round was led by Andra Capital and SGW, with participation from new investors such as Andrej Karpathy, ARK Invest, Fincadia Advisors, G Squared, In-Q-Tel (IQT), KHK & Partners, and NVIDIA. Pegatron, Supermicro, Wistron, and Wiwynn also made strategic investments.
Existing investors, including 1517, Crescent Cove, and USIT, participated in the funding round. The company intends to use the new capital to accelerate the expansion of its Cloud platform, Model Inference API, and Chat AI Assistant. CEO Stephen Balaban leads Lambda, which provides infrastructure, cloud services, and software for fine-tuning, training, and inference of AI models.
Lambda expands AI cloud platform
Lambda has introduced 1-Click Clusters, a self-serve and on-demand GPU cluster solution for AI model training. The company has also launched the Lambda Inference API and Lambda Chat AI Assistant, which offer hosted access to open-source models like DeepSeek R1, utilizing Lambda’s owned compute infrastructure.
This significant funding follows a previous announcement made by the company in April. The Series D round brings Lambda’s total equity raised to $863 million, positioning the company at a post-money valuation of $2.5 billion, according to sources familiar with the matter. Lambda’s hardware and cloud business serves over 5,000 customers across various sectors, including manufacturing, financial services, and the U.S. government.
This growth and new funding underscore the company’s strong AI cloud infrastructure market position.
Photo by; Kari Shea on Unsplash
