Nvidia-backed cloud computing company Lambda is seeking to raise up to $4 billion at a pre-money valuation of $14.5 billion in its final funding round before a planned initial public offering in 2027, the Wall Street Journal reported. The round is being led by investment firms Blackstone and Coatue Management, according to a letter to the company's limited partners reviewed by the Journal.
The letter revealed that Lambda's backlog of unfilled orders surged to $50 billion in September from $15 billion in June, highlighting strong demand for its services. The company is targeting the IPO next year, contingent on execution and market conditions. Lambda did not immediately respond to requests for comment, but the involvement of major investors like Blackstone and Coatue underscores confidence in the company’s growth trajectory.
Lambda operates in the cloud computing sector, which has seen significant investment activity recently. The planned $4 billion raise and $14.5 billion valuation position Lambda among the larger private players preparing to enter public markets. Its substantial order backlog reflects robust demand, potentially setting it apart from peers. The company’s IPO plans align with broader trends of cloud infrastructure firms seeking public capital to expand capacity and innovation.
The next key milestone for Lambda will be its IPO, targeted for 2027, subject to market conditions and execution. The company’s order backlog of $50 billion as of September provides a strong foundation for its public offering, signaling substantial market interest and operational scale.