Applied Digital Soars After $7B CoreWeave AI Partnership
Let me tell you what just happened in the data center and AI space—this is a huge one. Applied Digital, or APLD for short, just experienced a jaw-dropping surge in its stock price—up more than 50% in a single day. Why? It all comes down to a major new partnership with CoreWeave, the Nvidia-backed cloud service firm that’s been making serious waves in the AI infrastructure world.
On Monday, APLD stock hit an intraday high of $10.54, ultimately closing at $10.14, which marks a 48% gain on the day. That kind of move doesn’t just happen out of nowhere. The catalyst was a newly signed 15-year lease agreement with CoreWeave, which is projected to generate a massive $7 billion in revenue for Applied Digital over the life of the deal.
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Here's the breakdown: CoreWeave will be leasing 250 megawatts of data center capacity from Applied Digital’s North Dakota campus. And there's even an option for another 150 megawatts. That’s a huge capacity commitment, highlighting just how rapidly the demand for AI-specific computing infrastructure is growing. With hyperscalers like Microsoft and Meta pushing forward with ambitious AI roadmaps, infrastructure players like Applied Digital are in the right place at the right time.
This isn’t just about one lease. According to Wes Cummins, the Chairman and CEO of Applied Digital, these deals put the company firmly on the map as a critical provider of infrastructure for the next wave of AI and high-performance computing. It also strengthens the company’s transformation into a data center real estate investment trust—a strategic pivot that now looks incredibly well-timed.
To add another layer to this story, analysts from Needham have pointed out that OpenAI might actually be the end user behind this lease. That lines up with CoreWeave’s recent $4 billion deal with OpenAI, suggesting that this partnership could be part of a much bigger ecosystem of AI expansion.
In short, this isn’t just a win for Applied Digital—it’s a loud signal to the market that AI infrastructure is where serious money is moving. If you’re watching the intersection of AI and data center tech, this deal should be on your radar.
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