Lambda inks $1B private debt for Nvidia chip deal
Covered by 2 sources
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Lambda secured about $1 billion in private short-term debt arranged by JPMorgan to purchase Nvidia GPUs, which Microsoft will lease. This financing model, also used by Nebius, relies on Microsoft's lease contracts as collateral rather than the borrowing companies' own revenues. The approach raises concerns among financial regulators about credit market risks tied to AI-related debt.
