Microsoft Signs Multibillion-Dollar AI GPU Deal with Lambda

Lambda, a cloud computing company founded in 2012, has signed a multi-billion-dollar deal with Microsoft to deploy tens of thousands of Nvidia GPUs, including the latest Nvidia GB300 NVL72 systems, to build advanced AI infrastructure. This partnership builds on over eight years of collaboration between Lambda and Microsoft and addresses the surging demand for AI services like chatbots and intelligent assistants. Lambda supports over 200,000 developers and plans to expand its physical infrastructure, including opening an AI factory in Kansas City by 2026 with significant computing capacity. The deal complements other large AI cloud capacity agreements announced recently, such as Microsoft's $9.7 billion deal with IREN and OpenAI's $38 billion contract with Amazon. Nvidia's hardware is praised for being the leading accelerator for AI workloads, and Lambda continues to lease and build data centers to meet growing infrastructure needs. This agreement highlights the rapid growth and investment in AI supercomputing capabilities critical for the future development of AI technologies.