Applied Digital Corporation (NASDAQ: APLD) saw its shares skyrocket by 48% on Tuesday following the announcement of a landmark $7 billion infrastructure agreement with CoreWeave, a fast-growing cloud computing company backed by Nvidia.
The deal includes two 15-year lease agreements giving CoreWeave access to a total of 250 megawatts of data center capacity at Applied Digital’s North Dakota campus.
CoreWeave has the option to expand its usage by another 150 megawatts, making it one of the largest long-term infrastructure deals in the AI industry to date.
A Game-Changing AI Partnership
CoreWeave, a company at the forefront of AI-optimized cloud services, has made headlines in recent months for its aggressive expansion in AI infrastructure.
The company recently secured $7.5 billion in debt financing from Blackstone and Magnetar Capital, and has now partnered with Applied Digital to scale its AI workloads further.
This strategic alliance cements Applied Digital’s position as a crucial player in the high-performance data center space.
Once a traditional computing infrastructure company, Applied Digital is rapidly transforming into a data center real estate investment trust (REIT) focused on powering the AI revolution.
“This deal is transformative for Applied Digital,” said CEO Wes Cummins in a statement. “We are now positioned to deliver long-term value by supporting the most compute-intensive applications in the world.”
Riding the AI Wave
The timing of the announcement couldn’t be better. With AI adoption accelerating across industries—from healthcare to finance and defense—demand for powerful, cost-efficient cloud infrastructure has reached new highs.
CoreWeave claims its Nvidia-powered infrastructure delivers 35 times the performance at 80% lower cost compared to traditional cloud services, making it a magnet for enterprises and developers alike.
Applied Digital, which posted $53 million in revenue in its most recent quarter, is poised to see a massive jump in its earnings trajectory as a result of this deal.
Market Reaction
Investors reacted enthusiastically. Applied Digital shares closed the day up 48% at $10.14, after climbing as much as 54% during intraday trading. Analysts see this as a strong vote of confidence in the company’s long-term strategy to become a cornerstone provider of AI infrastructure.
“This is a pivotal moment for both companies,” said tech analyst Jennifer Rhodes. “It’s a direct response to the explosive demand for GPU-powered computing, and Applied Digital is now at the center of that trend.”
The Bigger Picture
The agreement with CoreWeave is just the latest in a wave of mega-deals reshaping the data center and AI ecosystem.
As AI workloads become more demanding, infrastructure providers like Applied Digital are becoming indispensable.
This deal signals a broader shift where real estate, hardware, and AI capabilities converge into a new kind of digital backbone for the global economy.
With CoreWeave continuing to expand and Nvidia chips in high demand, this partnership could become a model for future infrastructure investments in AI—and Applied Digital is now firmly in the spotlight.
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