Lambda seals multibillion-dollar AI infrastructure deal with Microsoft 2025

Prime Highlights

Lambdahas entered a multibillion-dollar AI infrastructure partnership with Microsoft, aiming to expand access to high-performance computing powered by Nvidia GPUs.
The collaboration marks a major milestone in their eight-year partnership, strengthening Microsoft’s global AI infrastructure capabilities.

Key Facts

The agreement includes the deployment of tens of thousands of Nvidia GB300 NVL72 GPUsacross Microsoft’s cloud network, enhancing AI model training performance.
Founded in 2012, Lambda has raised $1.7 billionin venture funding and is a leading provider of AI computing solutions for research labs and tech companies.

Background

Cloud computing company Lambda has deepened its partnership with Microsoft through a multibillion-dollar AI infrastructure agreement aimed at expanding access to high-performance computing. Backed by Nvidia, Lambda announced on Monday that the deal will involve deploying tens of thousands of Nvidia GPUs across Microsoft’s cloud network, though the exact value of the agreement was not disclosed.

The collaboration will include Nvidia GB300 NVL72 systems, which were unveiled earlier this year and began shipping recently. These advanced GPUs help run large AI tasks and speed up training for generative AI models.

“We’re thrilled to see the collaboration between Microsoft and Lambda in rolling out these powerful AI supercomputers,” said Stephen Balaban, CEO of Lambda. “Having partnered with Microsoft for over eight years, this represents an exciting and significant milestone in our ongoing relationship.”

Microsoft launched its first Nvidia GB300 NVL72 cluster in October, highlighting its continued push to strengthen AI infrastructure across its global data centers. Lambda, founded in 2012, has raised $1.7 billion in venture funding and has become a leading provider of AI computing solutions for research labs and tech companies.

Just hours before Lambda announced its news, Microsoft made public a $9.7 billion deal with the Australian data center firm IREN, and OpenAI revealed a $38 billion cloud agreement with Amazon Web Services ‍‌‍‍‌‍‌‍‍‌(AWS).

AWS also reported strong third-quarter earnings. The company made $33 billion in sales so far this year, growing 20.2% compared to last year, showing that demand for AI-driven cloud services is still booming.