We advised Lambda on the transaction

Davis Polk advised Lambda, Inc. in connection with Lambda’s $1 billion senior secured fixed rate delayed draw term loan financing. The proceeds of the facility will be used to fund the acquisition and installation of GPU servers and related infrastructure used to deliver compute services dedicated to two investment-grade offtakers across multiple data centers. The facility marks the first fixed-rate senior secured financing executed by a private neocloud with insurance companies and long-duration institutional fixed income investors, which generated significant investor demand and expanded the addressable investor base for AI infrastructure financing.

Lambda, the Superintelligence Cloud, builds gigawatt-scale AI factories for training and inference. Founded in 2012 by published AI engineers, Lambda’s mission is to make compute as ubiquitous as electricity and give every person access to artificial intelligence.

The Davis Polk infrastructure finance team included partners David J. Penna and Kailash Gupta and associates Benjamin Titlebaum and Hannah Biesinger. The structured finance and securitization team included partners James A. Florack and Ryan McNaughton and counsel Jimmy Moustakis and Erika D. White. Partner J. Avelina Burbridge and associate Omar Ashmawy provided real estate advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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