Lambda, an AI compute startup, has reached a valuation of $1.5 billion following a gargantuan $320 million Series C funding round. The San Jose-based company, known for its cloud computing services and tools used in training artificial intelligence software, is among the providers of Nvidia’s latest GPUs, coveted by AI developers.

Thomas Tull’s US Innovative Technology Fund took the main role in the round, with contributions from new investors such as B Capital, SK Telecom funds, and T. Rowe Price Associates. Existing investors such as Crescent Cove, Mercato Partners, 1517 Fund, Bloomberg Beta, and Gradient Ventures also got involved. The company’s clientele includes tech giants like Microsoft and Amazon.

This fundraising activity places Lambda at the top of this year’s largest rounds for AI startups, according to Crunchbase data. The AI sector is seeing an upward trend after experiencing a slow start to the year, accumulating more than $3 billion in the current calendar year.

Lambda is not the only cloud computing service in the AI space to secure a large funding round. In May, AI cloud infrastructure firm CoreWeave raised $200 million in a Series B extension funding round led by Magnetar Capital, taking their valuation to $2 billion.

This news comes alongside reports of various fundraising activities exceeding or reaching nine figures this week. Among them, Together AI, another startup connected to Nvidia, is raising over $100 million at a valuation exceeding $1 billion. Salesforce Ventures 1 is expected to lead the round, with participation from Coatue.

Source: AI Compute Startup Lambda Hits $1.5B Valuation After Massive $320M Raise.