Lambda signs multi-billion dollar AI infrastructure deal with Microsoft

Cloud computing company Lambda has deepened its relationship with Microsoft through a major AI infrastructure deal.

Nvidia-backed Lambda announced it had struck a multibillion-dollar deal with Microsoft on Monday to deploy tens of thousands of Nvidia GPUs, according to a press release. The exact size of the deal was not revealed. Some of these GPUs will be Nvidia’s GB300 NVL72 systems, which were announced earlier this year and began shipping in the past few months.

“It’s great to watch the Microsoft and Lambda teams work together to deploy these AI supercomputers,” Lambda CEO Stephen Balaban said in the company’s press release. “We’ve worked with Microsoft for more than eight years, and this is a great next step in our relationship.”

Microsoft opened its first Nvidia GB300 NVL72 lineup in October.

Companies like Lambda, which was founded years before the current AI boom in 2012 and has raised $1.7 billion in investment dollars, are seeing strong demand as companies continue to gobble up AI and computing infrastructure.

The announcement comes just hours after Microsoft announced a $9.7 billion AI cloud capacity deal with IREN, an Australian data center company.

Earlier today, OpenAI announced it had struck a $38 billion cloud computing deal with Amazon to purchase cloud services over the next seven years. The AI ​​company also allegedly signed a $300 billion deal with Oracle for cloud computing in September.

AWS reported it was on track to have its best year, in terms of operating income, in three years in its third-quarter earnings results last week. This division of Amazon has collected $33 billion in sales so far this year.

“AWS is growing at a pace not seen since 2022, accelerating again to 20.2% year over year,” Andy Jassy, ​​Amazon’s president and CEO, said in the company’s earnings call. “We continue to see strong demand for AI and core infrastructure, and we have been focused on accelerating capacity – adding more than 3.8 GW in the past 12 months.”

TechCrunch has reached out to Lambda for more information regarding the structure and size of the deal.