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Lambda Reaches $1.5B Valuation with $320M Series C Funding Round

San Jose-based AI compute startup Lambda attains unicorn status following a $320 million Series C funding round, valuing the company at $1.5 billion. Lambda specializes in providing cloud computing services and hardware for training artificial intelligence software, particularly leveraging Nvidia's latest GPUs.

The Series C round, led by Thomas Tull’s US Innovative Technology Fund, saw participation from new investors B Capital, SK Telecom, T. Rowe Price Associates, along with existing investors Crescent Cove, Mercato Partners, and others. Notable clients include tech giants Microsoft and Amazon.

Lambda's funding round, the largest by an AI startup this year according to Crunchbase data, reflects the growing momentum in the AI sector, with startups raising over $3 billion in the current calendar year. Other AI cloud computing services like CoreWeave have also secured substantial funding, indicating a flourishing market for AI infrastructure.

Additionally, Together AI, a startup assisting developers in accessing Nvidia server chips for AI training, is reported to be raising over $100 million at a valuation exceeding $1 billion, further highlighting the expanding ecosystem around Nvidia's technology.