AI computing company Lambda said Thursday that it has raised $320 million in a new funding round led by billionaire Thomas Tull's US Innovative Technology to expand its AI cloud business.

Top tech companies are racing to incorporate AI into their products and services. In an otherwise depressed private funding market, startups catering to surging demand for AI chips and learning have become a bright spot.

Including Nvidia NVDAand Microsoft MSFTof the listed tech companies have also rebounded strongly over the past six months on bets that AI will transform all industries.

"The rollout of AI requires a large number of graphics processing units (GPUs). Stephen Balaban, CEO and co-founder, said, "This latest funding supports our mission to make GPU computing as ubiquitous as electricity.

Founded in 2012, Lambda's hardware and private cloud businesses serve more than 5,000 customers in industries, including manufacturing, financial services, and the U.S. government.

Also participating in the round were funds and accounts such as B Capital, SK Telecom, T. Rowe Price Associates, Crescent Cove, and Mercato Partners.