Applied Digital (APLD.US) shares rise over 65% after raising $160M from Nvidia and other investors

Market VisionThursday, Sep 5, 2024 8:30 pm ET

1min read

Zhitong Finance APP noted that Applied Digital (APLD.US) rose more than 65% after raising $160 million in financing from Nvidia (NVDA.US) and other investors. Shares of Applied Digital rose 65.74% to close at $5.37 on Thursday.

Through a private placement, Applied Digital agreed to issue 49,382,720 common shares at $3.24 per share, representing the last closing price on September 4, 2024.

The investors in the transaction include Nvidia and real estate company Related Companies.

The transaction brings new capital to Applied Digital, which is expected to fund its growth and support the planned debt financing transaction.

The data center and artificial intelligence cloud company is currently seeking debt financing for a large data center project in North Dakota and expanding its cloud computing business.

Applied Digital has become Nvidia's preferred cloud partner. "We've worked with Nvidia a lot, and I think our uniqueness is that we have both cloud and data center construction," said Wes Cummins, CEO of Applied Digital. "I think both are important to them."

Nvidia has been ramping up its investments to support companies using its chips amid the AI boom. The company recently participated in a $100 million funding round for Sakana AI, a Japanese artificial intelligence research company.

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