Nvidia is aiming to close a deal with San Francisco cloud services startup Lambda Labs that could give Lambda Labs an additional $300 million in capital, according to a report Tuesday by The Information.
The potential deal would value the cloud infrastructure provider that uses Nvidia chips at over $1 billion.
Founded in 2012 by brothers Michael Balaban and Stephen Balaban, Lambda Labs specializes in delivering deep learning computing infrastructure such as GPU cloud services, servers, GPU clusters, workstations, and laptops. Customers include Apple, Intel, Microsoft, Amazon Research, Tencent, Kaiser Permanente, MIT, Stanford, Harvard, Caltech and the Department of Defense.
According to the company’s LinkedIn profile, Lambda offers the world's least expensive GPU Cloud with NVIDIA H100 instances available at just $1.99 an hour.
In March, Lambda Labs secured $44 million in Series B funding led by Mercato Partners; it will be used to expand its GPU capacity, improve network interconnects and enhance its cloud platform for AI training. According to Crunchbase, the company has received $112.2 million in funding to date.
If the deal goes through, it would mark Nvidia's eighth investment in private startups since March, as the company seeks to take advantage of the growing demand for its graphics processing units used in data center servers for AI development.
Nvidia declined to comment. Lambda CEO Stephen Balaban did not respond to requests for comment.
