AI cloud provider Lambda is reportedly in talks to raise $350 million in pre-IPO funding.

As per a report from The Information, Mubadala Capital is currently in talks to lead the round.

Lambda is now said to be targeting an initial public offering in H2 2026, slightly later than had previously been suggested. In September 2025, the company was said to be engaging Morgan Stanley, J.P. Morgan, and Citi to prepare for an IPO in the first half of this year.

DCD has contacted Lambda for comment.

Plans to launch an IPO came after Lambda saw significant growth in 2025, with revenue nearly doubling in the first half of 2025, surpassing internal expectations.

In the last quarter of 2025, the company signed a major multi-billion-dollar contract with Microsoft to provide the hyperscaler with access to its GPUs, while in September, it was said to have signed a $1.5 billion lease-back deal with Nvidia, which would see Nvidia using Lambda's cloud capacity powered by Nvidia GPUs.

The cloud provider has conducted several funding rounds to date, with November seeing $1.5bn raised in Series E funding, led by TWG Global. Prior to that round, in February 2025, Lambda raised $480m in a Series D round, led by Andra Capital and SGW. That round valued the company at $2.5bn.

Founded in 2012 and offering GPU-based cloud compute, Lambda operates out of 15 data centers across the US, according to its website. In November 2025, it announced it would be deploying a GPU cluster at Prime's LAX01 data center in California.