GPU cloud company Lambda Labs has raised $320 million in a Series C funding round.

The round was led by billionaire Thomas Tull’s US Innovative Technology fund, with participation from new investors B Capital, and SK Telecom, and existing investors including Crescent Cove, Mercato Partners, 1517 Fund, Bloomberg Beta, and Gradient Ventures.

The funding round values the company at $1.5 billion.

Founded in 2012, Lambda Labs rents out colocation space in data centers in San Francisco, California, and Allen, Texas, and offers comparatively low-cost GPU-based cloud compute. Alongside the cloud, it offers colocation space and sells GPU desktops.

In a statement, Lambda said this new financing will allow the company to further accelerate the growth of its GPU cloud, providing AI engineering teams with access to Nvidia GPUs.

“AI is fundamentally restructuring science, commerce, and industry," said Lambda CEO and co-founder, Stephen Balaban. "Over the next 10 years, every human endeavor will be augmented by the integration of LLMs and generative AI."

He continued: "This AI rollout is going to require a lot of GPUs. This latest financing supports our mission to make GPU compute as ubiquitous as electricity.”

Lambda has raised $112.2 million across seven funding rounds, the most recent being a $44 million Series B round in March 2023 which was led by Mercato Partners and included participation from Cloudera cofounder Jeff Hammerbacher, OpenAI cofounder Greg Brockman, and Y Combinator president Garry Tan.

In July 2023, it was reported that Nvidia was in talks to take an equity stake in the company, but the deal does not appear to have come to fruition. Nvidia did however take an equity stake in rival AI cloud startup CoreWeave when it raised $221 million in April 2023.