04:55 AM EDT, 09/05/2025 (MT Newswires) -- (Updates with Nvidia's ( NVDA ) response in the last paragraph.)

Nvidia ( NVDA ) agreed this summer to rent its own artificial intelligence chips from cloud firm Lambda in a $1.5 billion deal ahead of the cloud provider's initial public offering, The Information reported Thursday, citing a person with knowledge of the matter.

Under the agreement, Nvidia ( NVDA ) will rent 10,000 of its own AI chips from Lambda for $1.3 billion over four years, and 8,000 more chips in a separate $200 million deal over an unspecified duration, the source told the media outlet.

Nvidia's ( NVDA ) researchers plan to use the GPU servers it will rent from Lambda, another source told The Information.

It is unclear the amount Lambda paid for the Nvidia ( NVDA ) chip servers it is renting to Nvidia ( NVDA ), or how Nvidia ( NVDA ) is accounting for the deal, according to the report.

Nvidia ( NVDA ) declined to comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)