Nvidia Invests $160 Million in Applied Digital to Expand Data Center Solutions for AI and HPC

Applied Digital, a Texas-based company specializing in designing and operating next-gen digital infrastructure, has secured a significant $160 million investment from Nvidia, the global leader in GPUs and AI hardware. This deal strengthens the partnership between the two companies, focusing on scaling Applied Digital’s advanced data center and GPU cloud solutions for high-performance computing (HPC) and artificial intelligence (AI) applications.

The funds will be used to accelerate the launch of Applied Digital’s proprietary, hyper-efficient platform, which is tailor-made to handle the most demanding AI and HPC workloads. Known for its cutting-edge water-cooled data centers, Applied Digital offers highly optimized infrastructure specifically designed to enhance AI performance and cloud computing services.

Despite a net loss of $64.8 million on $43.7 million in revenue in the last quarter—mainly due to expenses tied to non-operational equipment and facilities—the company remains confident about its growth trajectory. CEO Wes Cummins emphasized the strong relationship with Nvidia and other investors, including Related Companies. Cummins stated: “We’re proud of the trust Nvidia and our partners have placed in us. Our team is excited to bring our specialized IT environments to market, providing critical infrastructure for AI, HPC, and other accelerated compute workloads.”

Under the $160 million agreement, Nvidia will acquire 49.4 million shares of Applied Digital at $3.24 per share—the closing price on September 4. Following the announcement, Applied Digital’s stock price surged to $5.59.

This investment marks a significant milestone for Applied Digital, positioning the company as a key player in the evolving AI and HPC landscape. With Nvidia’s backing, the company aims to meet the growing demand for high-efficiency, liquid-cooled data centers capable of handling the world’s most advanced computing workloads.