Subj : Applied Digital receives $160 million investment from Nvidia to b
To   : All
From : TechnologyDaily
Date : Fri Sep 06 2024 15:15:05

Applied Digital receives $160 million investment from Nvidia to boost 
datacenter chip demand

Date:
Fri, 06 Sep 2024 14:00:00 +0000

Description:
Applied Digital just sold Nvidia $160 million in shares in order to bring 
data center and GPU cloud solutions to market.

FULL STORY
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Applied Digital, a Texas-based firm that describes itself as a designer, 
builder, and operator of next-generation digital infrastructure for HPC 
applications, has confirmed a multimillion-dollar investment from industry 
leader Nvidia. 

The company announced that it had entered into an agreement with Nvidia worth 
$160 million. 

With the capital, Applied Digital will bring its data center and GPU cloud 
solutions to market at scale in order to deliver a proprietary, 
purpose-built, hyper-efficient platform for the worlds most advanced HPC and 
AI workloads. Nvidia invests $160m in Applied Digital 

The Texas-based company is known for building water-cooled data centers 
optimized for AI workloads as well as for other cloud computing purposes. 

Last quarter, Applied Digital reported a net loss of $64.8 million on a 
revenue of $43.7 million  it attributed much of the loss to expenses related 
to equipment and facilities that were not yet operational or generating 
revenue. 

Applied Digital CEO Wes Cummins commented: Were proud of our strong 
relationship with Nvidia, and the confidence that both they and Related 
Companies, along with institutional investors, have placed in us. Our team is 
eager to bring to market the vital capacity and contiguous, liquid-cooled IT 
environments that are tailor-made for AI, HPC, and other accelerated compute 
workloads. 

The $160 million deal will see 49.4 million shares transfer to Nvidia 
ownership at a price of $3.24 per share  the last closing price on September 
4. In the days following the announcement, share prices climbed to $5.59. 

Nvidia has not commented on the deal. 

However, the companys investment may later form part of an investigation if 
the US DOJ decides to go ahead with an antitrust probe into the companys 
alleged habits of stifling competition. 

Previously, Nvidia affirmed: Nvidia wins on merit, as reflected in our 
benchmark results and value to customers, and customers can choose whatever 
solution is best for them. More from TechRadar Pro These are the best AI 
writers Weve rounded up a list of the best cloud hosting providers More 
subpoenas issued to Nvidia as US continues antitrust case



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Link to news story:
https://www.techradar.com/pro/applied-digital-receives-160-million-investment-
from-nvidia-to-boost-datacenter-chip-demand


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