Cloud computing startup Lambda announced on Monday a multibillion-dollar deal with Microsoft for artificial intelligence infrastructure powered by tens of thousands of Nvidia chips.
The agreement comes as Lambda benefits from surging consumer demand for AI-powered services, including AI chatbots and assistants, CEO Stephen Balaban told CNBC's "Money Movers" on Monday.
"We're in the middle of probably the largest technology buildout that we've ever seen," Balaban said. "The industry is going really well right now, and there's just a lot of people who are using ChatGPT and Claude and the different AI services that are out there."
Balaban said the partnership will continue the two companies' long-term relationship, which goes back to 2018.
A specific dollar amount was not disclosed in the deal announcement.