AI data center provider Lambda has announced a $1.5 billion funding round led by TWG Global, a newly formed $40 billion investment firm co-founded by billionaire Thomas Tull, former owner of Legendary Entertainment, and Mark Walter, CEO of Guggenheim Partners. TWG Global manages a diverse portfolio, including Walter’s stakes in the Los Angeles Lakers and the Cadillac F1 racing team, and operates a $15 billion fund focused on AI investments, backed by Abu Dhabi’s Mubadala Capital. The firm has previously invested in a joint venture between Elon Musk’s xAI and Palantir to deliver AI agents to enterprises. Lambda, a key player in the AI infrastructure space and a direct competitor to CoreWeave, operates a network of AI data centers across the United States. It also offers its high-performance computing environments—referred to as “AI factories”—to major cloud providers, including hyperscalers. Earlier this month, Lambda revealed a multibillion-dollar agreement with Microsoft to supply AI infrastructure powered by tens of thousands of Nvidia GPUs. Nvidia itself is an investor in Lambda, underscoring the deep ties between the company and the AI hardware leader. This deal follows a similar arrangement Microsoft had with CoreWeave in 2024, during which it purchased approximately $1 billion in services—making CoreWeave its largest customer that year. In March, OpenAI secured a massive $12 billion deal with CoreWeave, intensifying competition among AI infrastructure providers. Prior to this latest funding round, Lambda had raised $480 million in a Series D round in February, which valued the company at around $2.5 billion according to PitchBook. The new $1.5 billion raise significantly exceeds earlier expectations, which had suggested Lambda was targeting hundreds of millions in funding at a valuation above $4 billion. While the company declined to disclose its current valuation, the scale of the investment indicates strong confidence in Lambda’s growth trajectory and strategic positioning. The funding comes amid growing demand for specialized AI infrastructure as major tech firms race to scale their generative AI capabilities. With rising interest from investors and strategic partnerships forming rapidly, Lambda’s latest round signals that the AI infrastructure sector remains a high-stakes battleground for dominance.