Lambda, Microsoft agree multibillion-dollar AI infrastructure deal

Cloud computing startup Lambda announced a multibillion-dollar deal on Monday. Microsoft for artificial intelligence infrastructure supported by tens of thousands of users Nvidia chips.

The deal comes as Lambda is capitalizing on growing consumer demand for AI-powered services, including AI chatbots and assistants, CEO Stephen Balaban told CNBC’s “Money Movers” on Monday.

“We’re probably in the middle of the biggest technology evolution we’ve ever seen,” Balaban said. “The industry is doing really well right now and there are a lot of people using ChatGPT, Claude and different AI services.”

Balaban said that the partnership will continue the long-term relationship of the two companies, which extends until 2018.

A specific dollar amount was not disclosed in the deal announcement.

Founded in 2012, Lambda provides cloud services and software for training and deployment of artificial intelligence models, serves over 200 thousand developers, and also rents servers powered by Nvidia’s graphics processing units.

New infrastructure with Microsoft will include NVIDIA GB300 NVL72 systems also deployed by the hyperscaler CoreWeaveaccording to a release.

“We love Nvidia’s products,” Balaban said. “They have the best accelerator product on the market.”

Balaban said that the company has dozens of data centers and that they plan to continue not only renting data centers but also establishing their own infrastructure.

Lambda at the beginning of October announced It plans to open an artificial intelligence factory in Kansas City in 2026. The facility is expected to become operational with a capacity of 24 megawatts and have the potential to exceed 100 MW.