A Dallas technology company just landed an investment from one of the most important players in the AI industry.
Applied Digital, which provides data center services for crypto and other demands, unveiled a $160 million private placement financing with investors that include NVIDIA, the fast-growing chip company, according to a statement on Thursday. The deal will help Applied Digital further strengthen its financial position and help bring key offerings and services to market at scale.
Shares of the company rose more than 65% for the day as of 11:50 a.m. central time, according to Nasdaq. Its market capitalization rose to more than $830 million.
NVIDIA has become one of the largest companies traded in the U.S., based on market valuation, after its hardware helped fuel the growth of generative AI, a key trend in technology driving automation across multiple industries. Its market cap recently stood at more than $2.5 trillion.
Applied Digital, which is an operator of data center capacity, provides services that assist crypto mining customers. Applied Digital offers cloud services for AI and machine learning developers — and touts a hosting business for high-performance computing.
“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,” Wes Cummins, CEO of Applied Digital, 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.”
In the private placement, Applied Digital agreed to issue 49.4 million shares of its stock at the last closing price on Wednesday.
The closing of the placement is subject to customary closing conditions.
