• Targeting a few hundred million USD
• Eyeing IPO for next year, following CoreWeave’s strong performance

Lambda Labs, a GPU cloud provider for AI training and inference, is in the process of finalizing a crossover round before an IPO, two sources familiar with the matter said.

The raise will be for a few hundred million USD, one of the sources said, similar to the size of its Series D raise of USD 480m. The Series D was co-led by Andra Capital and SGW, the company announced in February. Private equity firms will be targeted for the new raise, the source said.

Lambda Labs is targeting an IPO for next year, this source said, confirming what this news service reported in April.

The source also said Lambda Lab’s advantage, which will play well into its equity story, is that the company’s customer base is diverse and focused on developers. It has 5,000 customers spread across universities, banking firms, utility companies, and the US Department of Energy.

However, because its hardware margins are thin, Lambda Labs will be shifting more into cloud products pre-IPO, one of the sources said.

The San Jose, California-based company generates more than USD 400m in revenue and is on target to exceed USD 500m for this year, as reported. It has raised USD 863m to date.

The demand for AI is fueling a wave of IPOs among chip companies. Lambda’s IPO pursuit follows GPU cloud provider CoreWeave’s extraordinary performance on the stock market, which is up 249% since debuting on the Nasdaq at USD 40 in March. Ambiq Micro, a semiconductor company, also went public last month.

Founded in 2012, Lambda Labs offers GPU cloud services and on-premise hardware, which enables AI developers to build, test, and deploy AI products at scale.

Lambda Labs did not respond to requests for comment.