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Lambda Targets $14.5 Billion Valuation in Final Pre-IPO Round

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Lambda Targets $14.5 Billion Valuation in Final Pre-IPO Round

Cloud computing company Lambda is raising as much as $4 billion in a funding round that will value the company at $14.5 billion, excluding the money raised, the Wall Street Journal reported Tuesday (Oct. 6), citing unnamed sources.

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Lambda is raising this funding in a final round before a planned initial public offering (IPO) that the company’s management aims to launch in 2027, subject to execution and market conditions, according to the report.

A Lambda spokesperson declined the WSJ’s invitation to comment on these claims, per the report.

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PYMNTS reported last November that Lambda raised more than $1.5 billion to expand its AI cloud business.

Tuesday’s WSJ report said that round valued Lambda at $5.9 billion, post-money. The report cited valuation estimates by venture capital platform Forge Global.

The PYMNTS reported said that at the time of the November funding round, Lambda was shifting its strategy by building and owning its own data centers rather than renting capacity from larger cloud providers. Lambda said it planned to grow its footprint of GPU clusters and invest in the physical infrastructure needed to support customers building large models and agent-driven applications.

When Lambda closed a $275 million senior secured credit facility led and arranged by JPMorgan in August 2025, the startup said it planned to use the financing to build more AI data centers and expand its fleet of GPU servers to meet growing AI demand from enterprises and other customers.


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