Microsoft and Lambda strike multibillion-dollar AI infrastructure pact built on Nvidia chips

AI cloud startup Lambda said it reached a multibillion-dollar agreement with Microsoft to build out artificial-intelligence infrastructure using tens of thousands of Nvidia chips, extending a relationship that dates to 2018. The Nvidia-backed company, which rents GPU servers and provides tools to train and deploy AI models for more than 200,000 developers, will incorporate Nvidia’s GB300 NVL72 systems, also used by hyperscaler CoreWeave. The deal comes amid surging demand for generative-AI services such as chatbots. Lambda plans to expand through both leased and self-built data centers and is preparing an “AI factory” in Kansas City slated to open in 2026. Financial terms weren’t disclosed.

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