Lambda signs big AI infrastructure deal with Microsoft

Microsoft

Cloud computing firm Lambda has expanded its partnership with Microsoft through a multibillion-dollar AI infrastructure agreement aimed at deploying large-scale GPU clusters for AI workloads.

Backed by Nvidia, Lambda confirmed the deal in a press release on Monday, saying it will deliver tens of thousands of Nvidia GPUs to power Microsoft’s expanding AI data centres. While the financial terms were not disclosed, the deployment includes Nvidia’s latest GB300 NVL72 systems, which began shipping earlier this year.

“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 collaborating with Microsoft for more than eight years, and this is a phenomenal next step in our relationship.”

Microsoft has been rapidly scaling its AI compute infrastructure, launching its first Nvidia GB300 NVL72 cluster in October. The partnership with Lambda further strengthens Microsoft’s growing push to secure GPU capacity amid record demand from enterprises and AI developers.

Founded in 2012, Lambda has raised over $1.7 billion in venture capital and has become one of the leading providers of GPU-based cloud infrastructure for AI research and model training. Demand for its services has surged as companies scramble to acquire the computing resources needed to run advanced AI systems.

The announcement follows Microsoft’s separate $9.7 billion AI cloud capacity deal with Australian data centre firm IREN earlier in the day, part of a broader wave of multibillion-dollar cloud partnerships.

Earlier, OpenAI revealed a $38 billion cloud computing agreement with Amazon to secure long-term compute access, while reports suggest it also signed a $300 billion deal with Oracle in September.

Amazon Web Services, meanwhile, continues to post strong growth. In its latest quarterly results, AWS reported $33 billion in sales so far this year, with operating income at its highest level in three years. “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% year-over-year,” said Amazon CEO Andy Jassy, noting that AI and core infrastructure remain the company’s biggest growth drivers.