Nvidia's Chips Serves Collateral For Lambda's $500 Mn Loan

The specialty artificial intelligence cloud provider Lambda secured a USD 500 million loan from lenders including the Macquarie Group. This funding was completed keeping Nvidia’s most-sought chips as collateral, according to a Reuters report on Friday.

This loan follows the USD 320 million funding round led by billionaire Thomas Tull's US Innovative Technology in February and also includes the participation of investment adviser Industrial Development Funding.

In a statement Lambda said the aim is to use the funding to scale its GPU Cloud, featuring NVIDIA H100s.

Additionally, the raised finance will be used to purchase Nvidia's H200 chips, along with the GPU company’s latest Blackwell AI chips including B200 and GB200, Lambda added.

The B200 AI chip is likely to be priced between USD 30,000 to USD 40,000, as per reports.

Meanwhile, in November last year, Nvidia revealed Lambda would be among the few first cloud service companies to provide access to its H200 chips.