Artificial intelligence startup Lambda and Microsoft (MSFT) announced a multi-billion dollar agreement on Monday that will see the two companies work together to boost the infrastructure needed for the artificial intelligence spending boom, aided by Nvidia (NVDA) GPUs.
Microsoft and Nvidia shares rose in midday trading.
As part of the deal, Microsoft will deploy “tens of thousands” of NVIDIA GPUs, including its GB300 NVL72 systems, Lambda said in a statement. Lambda is among several neo-cloud providers that have entered into the artificial intelligence realm in recent years, including Nebius (NBIS), CoreWeave (CRWV) and others.
“It’s great to watch the Microsoft and Lambda teams working together to deploy these massive AI supercomputers,” said Stephen Balaban, CEO of Lambda, in the release. “We’ve been working with Microsoft for more than eight years, and this is a phenomenal next step in our relationship.”
Separately, on Monday, Microsoft said it had reached a deal to export some of Nvidia’s GPUs to the United Arab Emirates as part of a plan to spend roughly $15B in the country by 2029.