Applied Digital, a Dallas-based designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (HPC) applications, has secured a $160 million strategic financing via a private placement—priced at market—from institutional and accredited investors, including California-based chip giant NVIDIA and New York-based Related Companies.
As part of the private placement, Applied Digital [Nasdaq: APLD] agreed to issue 49,382,720 shares of its common stock at a price per share of $3.24, representing the last closing price on Sept. 4.
According to Applied Digital, the investment validates its innovation in the accelerated compute space and will fuel its expansion of data center and GPU cloud solutions.
“Applied Digital was built on its ability to identify market demands, and we believe our collective philosophy, technical expertise, and long-standing industry experience have brought us to our current place of strength that will carry us and our hyperscale customers securely into the AI and HPC future,” Applied Data CEO and Chairman Wes Cummins said in a statement. “We’re proud of our strong relationship with NVIDIA, and the confidence that both they and Related Companies, along with institutional investors, have placed in us. Our team is eager to bring to market the vital capacity and contiguous, liquid-cooled IT environments that are tailor-made for AI, HPC, and other accelerated compute workloads.”
Co-founded in 2021 by Cummins and Jason Zhang, the company’s president, Applied Digital rebranded from its original name, Applied Blockchain, in November 2022. It announced its plans to uplist to Nasdaq in April 2022.
Currently building out ‘one of the world’s largest data centers’
A Preferred NVIDIA Cloud Partner, Applied Digital said it is positioned to deliver a proprietary, hyper-efficient platform for advanced HPC and AI workloads. Among its current projects, the company cited its build-out of “one of the world’s largest data centers” and development of an additional 300MW of data center capacity. Applied Data said the financing will support these projects and strengthen Applied Digital’s position in the market for AI and HPC infrastructure.
With the additional funding, Applied Digital said it’s strengthening its financial position to bring its transformative data center and GPU cloud solutions to market at scale.
The company said these solutions—supported by its “deep bench of hyperscale talent, specialized access to a robust and immediately available pipeline of stranded power, and use of advanced infrastructure technologies such as closed-loop liquid cooling”—are ready to deliver a proprietary, purpose-built, hyper-efficient platform for the world’s most advanced HPC and AI workloads.
As a leading digital infrastructure developer focused on keeping pace with GPU innovation delivered by leaders like NVIDIA, Applied Digital said it continues to establish itself as a singular source of significant scale, flexibility, security, and power in a traditionally constrained national market.
Goldman Sachs & Co. is serving as exclusive placement agent and New Jersey-based Lowenstein Sandler LLP is serving as legal adviser to Applied Digital.
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