Erebor Bank Seeks $1.5B Funding Round With $8B Pre-Money Valuation

Palmer Luckey-led Erebor targets $1.5B raise at $8B valuation, nearly double prior round, with a16z and others participating.

Woofun AI reports that Erebor Bank, established by Palmer Luckey and Joe Lonsdale, is pursuing a $1.5 billion financing round targeting an $8 billion pre-investment valuation. This figure represents nearly a two-fold increase from the $435 million valuation achieved during its December 2025 capital raise of $350 million.

Existing backers include 8VC and Haun Ventures, while the current round aims to secure commitments from Lux Capital, Andreessen Horowitz, Human Capital, Valor Equity Partners, and SV Angel. The institution focuses on providing capital for AI infrastructure requirements, including GPU procurement, data center construction, and energy supply contracts. The transaction remains pending and is projected to close within the coming weeks.