Microsoft inks multibillion-dollar AI deal with this cloud computing company
04 Nov 2025

Lambda, a cloud computing company backed by NVIDIA, has announced a multibillion-dollar AI infrastructure deal with Microsoft.

The agreement will see the deployment of tens of thousands of NVIDIA GPUs, including the newly launched NVIDIA GB300 NVL72 systems.

Stephen Balaban, CEO of Lambda, expressed his enthusiasm for this collaboration in a press release.

Deal size undisclosed amid AI infrastructure race
CEO statement

Balaban said, "It's great to watch the Microsoft and Lambda teams working together to deploy these massive AI supercomputers."

He also added that their partnership with Microsoft has spanned over eight years and this deal is a phenomenal next step in their relationship.

The deal size was not disclosed but it comes as tech companies are racing to build AI infrastructure amid surging demand.

Microsoft's $9.7B deal boosts IREN's shares
Strategic moves

The announcement from Lambda comes just hours after Microsoft announced a $9.7 billion deal with Australian data center operator IREN for AI cloud capacity.

IREN's shares jumped almost 18% in premarket trading following the news of its contract with Microsoft.

The company also has a separate agreement with Dell Technologies worth some $5.8 billion to procure GB300 processors and related equipment.

IREN to deploy GB300 processors in phases by 2026
Deployment strategy

IREN intends to deploy the GB300 processors in phases through 2026 at its 750MW campus in Childress, Texas.

The company has also revealed that its contract with Microsoft includes a 20% prepayment.

These strategic moves by both Lambda and IREN highlight the growing demand for advanced AI infrastructure, as major tech companies continue to expand their cloud capacities.