Lambda inks multi-billion-dollar AI infrastructure deal with Microsoft

Cloud-computing company Lambda has deepened its relationship with Microsoft with a massive AI infrastructure deal.

Nvidia-backed Lambda announced Monday that it has signed a multibillion-dollar deal with Microsoft to deploy thousands of Nvidia GPUs. Press release. The exact size of the deal was not disclosed. Some of these GPUs will be the Nvidia GB300 NVL72 system, which was announced earlier this year and started shipping in the last few months.

“It’s great to see Microsoft and the Lambda team working together to deploy these massive AI supercomputers,” Lambda CEO Stephen Balaban said in the company’s press release. “We’ve been working with Microsoft for over eight years, and this is a tremendous next step in our relationship.”

Microsoft introduced it first Nvidia GB300 NVL72 cluster In October

Companies like Lambda, which was founded in 2012 a few years before the current AI boom and has raised $1.7 billion in venture dollars, are seeing strong demand as companies continue to build AI infrastructure and compute.

This announcement comes just a few hours later Microsoft announced a $9.7 billion deal For AI cloud capabilities with IREN, an Australian data center business.

Earlier today, OpenAI announced that it had a hit $38 billion cloud computing deal To buy cloud services with Amazon over the next seven years. The AI ​​company also allegedly committed an inkling $300 billion deal with Oracle Also for cloud computing in September.

AWS reported that it was on track for its best year, in terms of operating income, in its three years Third quarter earnings results Last week, Amazon said the division had collected $33 billion in sales so far this year.

“AWS is growing at a pace we haven’t seen since 2022, accelerating to 20.2% year over year,” Amazon President and CEO Andy Jassy said in the company’s earnings announcement. “We see strong demand in AI and core infrastructure, and we’re focused on accelerating capacity – more than 3.8 gigawatts have been added in the last 12 months.”

TechCrunch has reached out to Lambda for more information on the structure and size of the deal.