Cloud-computing company Lambda announced a multibillion-dollar AI infrastructure deal with Microsoft on Monday to deploy tens of thousands of Nvidia GPUs across systems for advanced computing needs.
The agreement involves Nvidia-backed Lambda supplying Microsoft with a large number of GPUs, including the Nvidia GB300 NVL72 systems. These systems were introduced earlier this year and started shipping in the past few months. The precise value of the deal remains undisclosed, as stated in Lambda’s press release. This partnership builds on prior collaborations between the two companies.
Stephen Balaban, CEO of Lambda, commented on the development in the press release: “It’s great to watch the Microsoft and Lambda teams working together to deploy these massive AI supercomputers.” He added, “We’ve been working with Microsoft for more than eight years, and this is a phenomenal next step in our relationship.”
Microsoft activated its initial Nvidia GB300 NVL72 cluster in October. Lambda, established in 2012 before the surge in AI technologies, has secured $1.7 billion in venture capital funding. The company currently faces high demand from businesses seeking AI infrastructure and computational resources.
The Lambda announcement occurred shortly after Microsoft disclosed a $9.7 billion agreement for AI cloud capacity with IREN, an Australian data center operator. Earlier on the same day, OpenAI revealed a $38 billion cloud-computing contract with Amazon to acquire services spanning the next seven years. OpenAI also allegedly finalized a $300 billion cloud-compute arrangement with Oracle in September.
