AI cloud Lambda is reportedly looking to raise up to $3 billion ahead of plans for an Initial Public Offering (IPO).

According to Bloomberg, citing people familiar with the matter, the company is seeking the funding ahead of a possible public offering next year.

The funding round could value Lambda at $12 billion or more, but talks remain ongoing and could be subject to change.

The sources told Bloomberg that Lambda has already received multiple term sheets for the round, and the company is anticipating revenue of more than $1.5bn this year.

DCD has contacted Lambda for comment.

In November 2025, Lambda raised $1.5bn in a funding round led by TWG Global and with participation from Andra Capital, SGW, ARK Invest, Nvidia, and others.

Earlier this month, the company also secured a $926 million senior secured loan facility, and a $1bn credit facility in May 2026.

Previously, the company was reported to be seeking $350m in a pre-IPO round.

Founded in 2012 and offering GPU-based cloud compute, Lambda operates out of 15 data centers across the US, according to its website.

Earlier this week, UK-based competitor Nscale was reported to be seeking up to $3 billion in its own US IPO. That offering could be held as soon as September 2026. CoreWeave, another competitor, held its own IPO in March 2025.

Other companies that have recently filed for IPOs include Anthropic, Csquare, and SpaceX. Data center operators Vantage, CyrusOne, and DayOne are all said to also be planning their own public offerings.