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Nvidia Partners with Cloud Startup Lambda in $1.5 Billion Deal to Lease AI Chips: 18,000 GPUs to Be Rented Over Four Years Ahead of Lambda’s IPO

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Nvidia Takes a Strategic Step: Leasing GPUs Back

Nvidia, the powerhouse behind the AI revolution, is making headlines with a bold move to lease back its own GPUs. The company has signed a significant deal with Lambda, a cloud service provider it has heavily invested in.

  • Key Highlights:
    • Lease Terms: A four-year contract for 10,000 GPUs, valued at approximately $1.3 billion.
    • Additional Deal: Another $200 million for 8,000 older chips.
    • In-House Use: The GPUs will be deployed by Nvidia’s researchers, highlighting the company’s preference for its own products.

Lambda, established in 2012, supports major clients like Microsoft and Amazon, and is gearing up to serve pioneers like Google and OpenAI. This leasing strategy mirrors Nvidia’s past dealings, including a notable agreement with CoreWeave.

This strategic move emphasizes Nvidia’s commitment to maintaining control and efficiency in its operations.

Engage with us: What are your thoughts on Nvidia’s new strategy? Share your insights in the comments!

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