Lambda Inc., a cloud-infrastructure provider that counts Nvidia among its investors, is in advanced talks to raise several hundred million dollars at a valuation of roughly $4 billion to $5 billion, according to people familiar with the matter. The San Francisco-based company is also weighing an initial public offering that could come as early as the end of 2025, the people said. The fundraising push underscores the heightened interest in businesses building services around artificial-intelligence hardware. Rival chip start-up Rivos, backed by venture capitalist Lip-Bu Tan, is separately seeking $400 million to $500 million at a valuation of more than $2 billion to finance development of a graphics-processing unit aimed at AI inference workloads it hopes to release in 2026. The capital moves come as the dominant supplier of AI accelerators, Nvidia, sought to calm investors about its own product roadmap. On 14 August the company said its next-generation Rubin GPU remains “on track,” countering research notes from Fubon and Edgewater that suggested potential delays as Nvidia works to keep pace with Advanced Micro Devices’ upcoming Mi450 chip. Taken together, the funding efforts and product reassurances highlight intensifying competition—and ample investor appetite—across the AI semiconductor and cloud-services ecosystem.