Microsoft Corporation (MSFT.US) makes a billion-dollar investment to partner with Lambda and add thousands of NVIDIA Corporation (NVDA.US) GPUs to ramp up the AI arms race.

Artificial intelligence startup Lambda and Microsoft Corporation (MSFT.US) announced on Monday a billion-dollar agreement to strengthen the infrastructure needed for the AI boom and deploy computing resources supported by NVIDIA Corporation (NVDA.US) GPUs. In a statement, Lambda said that as part of the agreement, Microsoft Corporation will deploy "tens of thousands" of NVIDIA Corporation GPUs, including their latest GB300 NVL72 systems. Lambda is one of several emerging cloud service providers that have entered the field of AI in recent years, including Nebius (NBIS.US), CoreWeave (CRWV.US), among others. Lambda CEO Stephen Balaban said in a press release, "We are excited to see the teams of Microsoft Corporation and Lambda working together to deploy these large AI supercomputers. Our collaboration with Microsoft Corporation has been over eight years, and this is an extraordinary step in our relationship." Furthermore, Microsoft Corporation announced on the same day that they have reached an agreement to export some NVIDIA Corporation GPUs to the United Arab Emirates as part of their plan to invest approximately $15 billion in the country by 2029.