Lambda is raising up to $4 billion in a funding round led by Coatue Management and Blackstone, valuing the cloud provider at $14.5 billion before the new money. The Wall Street Journal reported the raise, which could be Lambda’s final private round ahead of a planned 2027 initial public offering. Lambda did not immediately respond to a request for comment, and neither did Coatue nor Blackstone.
A letter to investors reviewed by the Journal shows Lambda’s backlog climbed from $15 billion in June to $50 billion in September. Much of that growth appears tied to a single customer, Anthropic, which committed $35 billion in a deal signed in late August. That concentration means Lambda’s valuation could depend heavily on Anthropic’s ability to keep paying. Even so, investors remain willing to back providers of scarce GPU capacity, particularly those holding large contracts with a major AI lab.
For neoclouds like Lambda, demand is less of a concern than the cost of serving it. Data center buildouts are largely funded by debt, and Lambda raised an additional $1 billion last week. Lenders, meanwhile, are becoming more selective about whom they fund and on what terms. Raising capital now gives Lambda more money before public market scrutiny begins and helps set the tone for its IPO pricing.
Lambda’s valuation has risen sharply since its 2025 funding round. The company had reportedly intended to go public this year but delayed those plans amid market uncertainty. When it does list, Lambda would join other Nvidia-backed neoclouds, including CoreWeave and Nebius, that rely on their stock prices to finance data center construction. British neocloud Nscale filed for an IPO last month and is expected to begin trading soon.
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