Lambda, a cloud computing firm, has expanded its partnership with Microsoft through a significant agreement focused on AI infrastructure.
On Monday, Lambda, which is supported by Nvidia, revealed in a press release that it had entered into a multibillion-dollar arrangement with Microsoft to roll out tens of thousands of Nvidia GPUs. The specific value of the contract was not made public. Among the GPUs included are Nvidia GB300 NVL72 systems, which were introduced earlier this year and have started shipping in recent months.
“It’s exciting to see the teams at Microsoft and Lambda collaborating to launch these large-scale AI supercomputers,” said Lambda CEO Stephen Balaban in the press release. “Our partnership with Microsoft spans over eight years, and this marks an impressive new chapter for both companies.”
Microsoft launched its inaugural Nvidia GB300 NVL72 cluster in October.
Lambda, established in 2012—well before the current surge in AI—and having secured $1.7 billion in venture funding, is experiencing heightened demand as organizations increasingly invest in AI computing resources.
This news follows Microsoft’s announcement, just hours earlier, of a $9.7 billion agreement with Australian data center operator IREN to expand AI cloud capacity.
Earlier today, OpenAI shared that it had finalized a $38 billion cloud services agreement with Amazon to purchase cloud resources over the next seven years. In addition, the AI firm reportedly signed a $300 billion cloud computing deal with Oracle in September.
Last week, AWS reported in its third-quarter financial results that it was on pace for its strongest operating income in three years, having generated $33 billion in sales so far this year.
“AWS is expanding at a rate we haven’t witnessed since 2022, with year-over-year growth reaching 20.2%,” said Andy Jassy, Amazon’s president and CEO, in the company’s earnings statement. “We’re observing robust demand for both AI and foundational infrastructure, and have prioritized scaling up capacity—adding more than 3.8 gigawatts in the past year.”
TechCrunch has contacted Lambda to request further details about the structure and value of the deal.
