After receiving a $0.16 billion financing from Nvidia and other investors, Applied Digital (APLD.US) stock price rose more than 65%.
According to the Smart Finance app, after receiving a $0.16 billion financing from Nvidia and other investors, Applied Digital (APLD.US) stock price rose more than 65%. At the close on Thursday, the company was up 65.74%, closing at $5.37.
Through private placement, Applied Digital has 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 brings new capital to Applied Digital and is expected to provide funding for the company's growth and support planned debt financing transactions.
The datacenter and artificial intelligence cloud company is currently seeking debt financing for a large datacenter project in North Dakota and expanding its cloud computing business.
Applied Digital has become Nvidia's preferred cloud partner. CEO Wes Cummins said, 'We have worked with Nvidia a lot, and I think our uniqueness lies in having both cloud business and datacenter construction. I think both are important to them.'
In the AI boom, Nvidia has been increasing its investment to support companies using its chips. The company recently participated in a round of $0.1 billion financing for Sakana AI, a Japanese AI research company.