Nvidia is in talks with Lambda Labs to take an equity stake, The Information reports.

Lambda is a small US-based cloud provider that focuses on providing low-cost access to GPUs for artificial intelligence training. It is based out of Colovore's data center in Santa Clara, California, as well as another facility in Allen, Texas.

Nvidia CEO Jensen Huang with a DGX-2
– Sebastian Moss

Nvidia previously gave the company, as well as competitor CoreWeave, preferential supplies of its hard-to-get H100 GPUs. Unlike Microsoft, Amazon, and Google, the two companies are not trying to develop their own AI chips.

The investment would be part of a $300 million raise that could value the company at more than $1 billion. Lambda raised $44 million in March from a number of investors, including OpenAI co-founder Greg Brockman.

Rival AI cloud startup CoreWeave raised $221 million a month later, with Nvidia among those taking an equity stake.

With hyperscalers struggling to acquire enough GPUs to support the current generative AI explosion, Microsoft in June announced that it would send some customer workloads to CoreWeave data centers. The Information reports that it has a similar arrangement with Lambda.

"Lambda is building the best cloud in the world for training AI," Lambda Labs co-founder and CEO Stephen Balaban said in March. "Over the past couple of years, we've seen extreme growth in our cloud product."