AsianFin -- Lambda, a small artificial intelligence cloud services provider preparing for a public listing, has secured significant backing from chipmaker Nvidia, sources familiar with the matter said.

This past summer, Nvidia agreed to lease 10,000 GPU servers equipped with its proprietary AI chips from Lambda for a four-year term, in a deal valued at $1.3 billion. In addition, Nvidia struck another $200 million arrangement to lease 8,000 servers with Nvidia chips, though the timing of this second contract has not been disclosed.

These agreements will make Nvidia Lambda’s largest customer, underscoring the close collaboration between the two companies as AI cloud demand surges. The deals also provide Lambda with a sizable revenue base and highlight Nvidia’s strategy to expand the deployment of its AI hardware across emerging cloud service providers.