Lambda Signs Multi-Billion-Dollar AI Infrastructure Deal with Microsoft

Cloud computing firm Lambda has deepened its partnership with Microsoft through a major AI infrastructure agreement.

Backed by Nvidia, Lambda announced on Monday that it has secured a multi-billion-dollar deal with Microsoft to deploy tens of thousands of Nvidia GPUs. While the exact scale of the agreement remains undisclosed, some of the GPUs will include Nvidia’s GB300 NVL72 systems—first unveiled earlier this year and shipped over the past few months.

“It’s incredibly exciting to see the Microsoft and Lambda teams working together to deploy these large-scale AI supercomputers,” said Stephen Balaban, CEO of Lambda, in the company’s press release. “Our collaboration with Microsoft spans over eight years, and this marks an extraordinary next step in our relationship.”

Microsoft launched its first Nvidia GB300 NVL72 cluster in October.

Founded in 2012—well before the current AI boom—Lambda has raised $1.7 billion in venture capital. Demand for AI infrastructure and computing remains robust as companies continue to invest heavily in these resources.

Just hours after Lambda’s announcement, Microsoft revealed a $9.7 billion agreement with Australian data center operator IREN to expand AI cloud capacity.

Earlier today, OpenAI disclosed a $38 billion cloud computing deal with Amazon, under which it will purchase cloud services over the next seven years. The AI firm is also reported to have signed a $300 billion cloud agreement with Oracle in September.

AWS recently reported its strongest annual operating income growth in three years, according to its Q3 earnings release last week. The Amazon division has generated $33 billion in revenue so far this year.

“AWS is growing at a pace we haven’t seen since 2022, accelerating again to 20.2% year-over-year growth,” said Andy Jassy, President and CEO of Amazon, in the company’s earnings announcement. “We continue to see strong demand for both AI and core infrastructure, and we’re focused on rapidly scaling capacity—adding more than 3.8 gigawatts over the past 12 months.”