Neocloud Lambda has reportedly secured $1 billion in private short-term debt to purchase Nvidia GPUs.

As reported by Bloomberg, the company will lease the chips to Microsoft.

The funding was organized by JPMorgan Chase & Co and offered to private placement investors. The bank declined to comment to Bloomberg.

DCD has contacted Lambda for comment.

Microsoft and Lambda have an ongoing agreement under which Microsoft leases access to Lambda's fleet of GPUs. In November 2025, this was expanded with a "multi-billion-dollar" agreement that would give Microsoft access to tens of thousands of Nvidia GB300 NBL72 systems via Lambda's platform.

This private debt offer comes shortly after Lambda secured a$926 million senior secured loan facility, which the company said would be used to support the expansion of its GPU cloud platform.

Last week, reports emerged that the neocloud was seeking to raise as much as $3 billion ahead of its plans for an initial public offering (IPO), which is expected to take place next year.

Previously, Lambda secured a $1bn credit facility in May 2026.

The company was founded in 2012 and currently operates out of 15 data centers across the US. It reportedly signed a $35bn capacity agreement with AI lab Anthropic earlier this week.