NVIDIA and other investors raised $160 million in financing, Applied Digital's stock price surged more than 65%
After receiving a $160 million investment from NVIDIA and other investors, Applied Digital's stock price surged by over 65%. As of Thursday's close, the company's stock price was $5.37, up 65.74%. This financing will support Applied Digital's development and debt financing plans. Additionally, Applied Digital has become NVIDIA's preferred cloud partner, closely collaborating with them in the field of artificial intelligence
Intelligent Finance APP noticed that after receiving a $160 million investment from NVIDIA (NVDA.US) and other investors, Applied Digital (APLD.US) stock price surged over 65%, closing at 65.74% on Thursday at $5.37.
Through private placement, Applied Digital agreed to issue 49,382,720 common shares at a price of $3.24 per share, representing the closing price on September 4, 2024.
Investors in this transaction include NVIDIA and real estate company Related Companies.
This transaction has brought new capital to Applied Digital, expected to provide funding for the company's growth and support planned debt financing transactions.
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. CEO Wes Cummins stated, "We work a lot with NVIDIA, and I think what sets us apart is that we have both cloud business and data center construction," "I think both are very important to them."
In the artificial intelligence boom, NVIDIA has been increasing its investment to support companies using its chips. The company recently participated in a $100 million financing round for Japanese artificial intelligence research company Sakana AI