Lambda, the AI ​​data center provider, raises a whopping $1.5 billion following a multi-billion dollar Microsoft deal.

Lambda, the AI ​​data center provider, announced Tuesday that it has raised $1.5 billion in a round led by TWG Global, a relatively new $40 billion investment firm created by billionaires Thomas Tull, the former owner of Legendary Entertainment, and Guggenheim Partners founder and CEO Mark Walter.

TWG owns a variety of billionaire assets, including Walter’s stakes in the Los Angeles Lakers and the new Cadillac F1 racing team. The company also has a $15 billion fund to invest in artificial intelligence, which is anchored by Mubadala Capital in Abu Dhabi. TWG previously invested in partnerships with Elon Musk’s xAI and Palantir to sell AI agents to enterprises.

Now it supports Lambda, which runs a number of US AI data centers. Lambda is a competitor to CoreWeave, though it also sells so-called “AI factories” to hyperscale clouds. Earlier this month, Lambda announced a multibillion-dollar deal to supply Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs. (Nvidia is an investor in Lambda as well.)

Remember, Microsoft made a similar deal with CoreWeave and bought roughly $1 billion worth of services from CoreWeave in 2024, its largest customer last year by a mile. Then OpenAI swooped in and signed a $12 billion deal with CoreWeave in March.

Meanwhile, deal watchers have been talking for months about Lambda seeking to raise hundreds of millions of dollars at a valuation of up to $4 billion. There was also talk of an IPO. Before that, Lambda raised a $480 million Series D in February, with an estimated valuation of $2.5 billion, according to Pitchbook.

Lambda’s $1.5 billion raise far exceeds those earlier whispers of what it was seeking. We can’t confirm whether its value has also risen, and Lambda declined to comment on that.