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AI data center provider Lambda raises whopping $1.5B after multibillion-dollar Microsoft deal

Read the full articleAI data center provider Lambda raises whopping $1.5B after multibillion-dollar Microsoft deal on TechCrunch
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What Happened

Lambda's new raise was a solid beat over the amount that deal-watchers say it was hoping to hit.

Our Take

Lambda's basically selling shovels during a GPU gold rush and getting insane valuations for it. $1.5B is wild. But here's the thing—when GPU supply normalizes (and it will), demand flattens, and pricing collapses.

They're betting on sustained scarcity that probably won't last. Good business today, but this sector's got a bubble inside the bubble. Microsoft's move was smart though: lock up supply before it gets worse, then gradually release it as terms tighten.

What To Do

If you're using Lambda, lock in long-term pricing now before the sector corrects.

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