Cloud provider Lambda is raising up to $4 billion at a $14.5 billion pre-money valuation, marking what could be its last private round before a planned 2027 IPO, according to The Wall Street Journal.

Investment Details

Coatue Management and Blackstone are leading this funding round. A letter to investors reviewed by the Journal indicates that Lambda’s backlog grew from $15 billion in June to $50 billion in September. While this increase suggests a surge in demand, much of it is attributed to a $35 billion commitment from Anthropic, which signed a deal with Lambda in late August.

Valuation Concerns

This means Lambda’s valuation, which has significantly increased since its 2025 funding round, may heavily rely on Anthropic’s continued financial support. Despite the challenges, investors remain optimistic about companies providing reliable GPU capacity, especially those with substantial contracts with major AI labs.