Nvidia-backed AI cloud provider Lambda is raising $917 million through the leveraged loan market to purchase AI chips. According to ChainCatcher, the financing will be completed through a loan based on rights tied to GPU assets and is intended to help the company expand its AI computing resources.

The report said chip financing is becoming a new way for AI companies to fund infrastructure as demand for large-scale computing clusters grows. Lambda is part of the fast-growing new cloud provider segment, which supplies GPU computing power and AI infrastructure services to enterprises and developers.

AI infrastructure companies are increasingly exploring new financing channels to meet the heavy capital needs of building compute clusters. CoreWeave previously completed the first chip-financing transaction in the institutional leveraged loan market, providing a new model for the sector. As demand for generative AI continues to rise, Nvidia GPU supply remains a key resource for AI companies seeking to expand.