Lambda signs multibillion-dollar AI infrastructure deal with Microsoft

The partnership will deploy tens of thousands of Nvidia GPUs to power next-generation AI systems as Lambda expands its cloud infrastructure for global developers

Cloud computing startup Lambda has entered into a multibillion-dollar agreement with Microsoft to expand artificial intelligence infrastructure using tens of thousands of Nvidia GPUs, the company announced on Monday (November 3). The move marks a major step in strengthening Microsoft’s AI supercomputing capabilities and scaling Lambda’s cloud services for developers worldwide.

Expanding AI infrastructure

The new collaboration builds on Lambda’s long-standing partnership with Microsoft, which began in 2018. Under the deal, Lambda will deploy Nvidia GB300 NVL72 systems, some of the most advanced GPU clusters designed for training and running large-scale AI models. Although the financial terms were not disclosed, both companies described the deal as a significant milestone in accelerating AI adoption.

Lambda CEO Stephen Balaban said the agreement comes amid a global boom in AI demand, fueled by services such as ChatGPT and Claude. “We’re in the middle of one of the largest technology buildouts in history,” Balaban said. “The industry is thriving, and we’re proud to deepen our collaboration with Microsoft.”

Scaling for the future

Founded in 2012, Lambda provides cloud services and GPU-powered infrastructure to more than 200,000 developers. The company operates multiple data centers and plans to expand further by building new facilities alongside leasing existing ones.

In October, Lambda announced plans to open an AI factory in Kansas City by 2026, initially offering 24 megawatts of capacity with future scalability up to 100 MW—underscoring its ambition to become a key enabler of the global AI ecosystem.