On Tuesday, Lambda, a provider of AI data centers, revealed it secured $1.5 billion in funding. The investment round was spearheaded by TWG Global, a relatively new investment company with $40 billion in assets, established by billionaires Thomas Tull—previously the owner of Legendary Entertainment—and Mark Walter, the founder and CEO of Guggenheim Partners.
TWG manages a range of assets for these billionaires, such as Walter’s ownership interests in the Los Angeles Lakers and the newly formed Cadillac F1 racing team. The firm also oversees a $15 billion AI investment fund, anchored by Mubadala Capital from Abu Dhabi. In the past, TWG has partnered with Elon Musk’s xAI and Palantir to provide AI agents to businesses.
TWG is now supporting Lambda, which operates several AI data centers across the United States. Lambda competes with CoreWeave, but it also markets its “AI factories” to major cloud providers. Earlier this month, Lambda disclosed a multibillion-dollar agreement to deliver AI infrastructure to Microsoft, utilizing tens of thousands of Nvidia GPUs. (Nvidia is also among Lambda’s investors.)
It’s worth noting that Microsoft previously entered a similar arrangement with CoreWeave, purchasing around $1 billion in services from them in 2024, making Microsoft their top client by a significant margin last year. Subsequently, OpenAI entered the scene, signing a $12 billion contract with CoreWeave in March.
For several months, industry observers have speculated that Lambda was aiming to raise several hundred million dollars at a valuation exceeding $4 billion, with rumors of a potential IPO as well. Before this, Lambda completed a $480 million Series D round in February, which PitchBook valued at approximately $2.5 billion.
Lambda’s latest $1.5 billion fundraising round greatly surpasses earlier expectations. However, whether its valuation has also increased remains unconfirmed, as Lambda chose not to comment on that matter.