Lambda's backlog has surged from $15 billion in June to $50 billion in September, a letter to investors reviewed by the Journal shows. However, much of that increase is driven by a single customer: AI lab Anthropic, which signed a $35 billion commitment with Lambda in late August.
The heavy reliance on one client means Lambda's valuation, which has climbed significantly since its 2025 funding round, could depend heavily on Anthropic's ability to continue paying. Still, with reliable GPU capacity in short supply, investors remain willing to bet on companies that provide it, especially those with large contracts from major AI labs.
For so-called neoclouds like Lambda, the challenge is not demand but the cost of meeting it. Data center buildouts are largely funded by debt. Lambda raised an additional $1 billion in debt last week, and lenders are becoming more selective about which companies they finance and on what terms. Lambda's decision to raise equity now not only sets the stage for its IPO pricing but also secures more capital before the scrutiny of public markets begins.
Lambda was reportedly planning to debut on public markets this year but pushed the timeline back amid market uncertainty. When it does list, it will join other Nvidia-backed neoclouds such as CoreWeave and Nebius, which now depend on their stock price to fund data center expansion. British neocloud Nscale filed for a US IPO last month and is expected to begin trading soon.