Microsoft has expanded its use of AI cloud provider Lambda, having signed a new "multi-billion-dollar" agreement for access to GPUs.

The deal will give Microsoft access to tens of thousands of GPUs, including the Nvidia GB300 NVL72 systems.

The exact value of the deal and the number of GPUs provided have not been shared.

“It’s great to watch the Microsoft and Lambda teams working together to deploy these massive AI supercomputers,” said Stephen Balaban, CEO of Lambda. “We’ve been working with Microsoft for more than eight years, and this is a phenomenal next step in our relationship.”

This lease agreement is the latest in a series of deals Microsoft has made of late. This week already saw Microsoft signing a $9.7bn deal with Iren for access to GPUs, and in October, it was estimated that Microsoft had signed some $33bn in compute deals, including with Nebius, Nscale, CoreWeave, and other previous deals with Lambda.

Notably, CEO Satya Nadella revealed in a recent interview on the Bg2 Pod that the company currently has GPUs sitting idle as the company doesn't have the power available to plug them in.

During Microsoft's Q1 2026 earnings call, CFO Amy Hood noted that the ongoing capacity crunch is a problem.

“We are, and have been, short now for many quarters. I thought we were going to catch up. We are not. Demand is increasing,” she said.

For that quarter alone, Microsoft spent some $11.1bn leasing data center space. It is unclear if this includes the deals signed with Neoclouds.

Lambda brought its first Nvidia GB300 NVL72 systems online in September of this year, with the deployment initially at EdgeCloudLink's (ECL) data center in Mountain View, California. That same month, it was reported that Nvidia had signed a deal to lease back around 18,000 GPUs from Lambda with an estimated contract value of $1.5bn.

Founded in 2012 and offering GPU-based cloud compute, Lambda operates out of 15 data centers across the US, according to its website. The company aims to deploy more than one million Nvidia GPUs and 3GW of liquid-cooled data center capacity.

The company is known to lease colocation space in data centers in San Francisco, California (ECL); Allen, Texas; and Columbus, Ohio (Cologix). EdgexConneX is developing facilities in Chicago, Illinois, and Atlanta, Georgia, for the company. Lambda is set to occupy an Aligned facility in Plano, Texas. The company is also sub-leasing a Prime facility in Vernon, California, from Supermicro. It is also set to occupy a facility in Kansas City, Missouri.