We advised Lambda on the transaction

Davis Polk advised Lambda, Inc. in connection with a $926 million senior secured term loan B facility. 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 an investment-grade offtaker. The facility marks the first investment-grade-rated term loan B financing executed by a private neocloud, 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 Jack Hobbie, Benjamin Titlebaum, Zachariah C. Taylor and Hannah Biesinger. Counsel Yixuan Long provided tax advice. Partners Brian D. Hirsch and 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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