What happened
Lambda and Microsoft entered a multibillion-dollar agreement to expand cloud-based accelerated computing resources. Lambda will deploy tens of thousands of NVIDIA GPUs, including GB300 NVL72 systems, to bolster AI infrastructure. Additionally, Lambda plans a 100MW AI factory in Kansas City by 2026, designed to train the largest AI models and meet increasing global demand for high-performance computing. This follows Microsoft's $9.7 billion agreement with IREN.
Why it matters
This significant expansion of externalised AI compute infrastructure introduces a dependency constraint on third-party providers for critical high-performance computing resources. It creates a visibility gap for internal IT operations and security teams regarding the direct control and monitoring of underlying hardware and data flows within these specialised environments. This increases exposure for procurement, IT security, and compliance teams, raising due diligence requirements for managing service level agreements, data governance, and security postures across distributed, external AI infrastructure.
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