Applied Digital is a digital infrastructure firm that is developing and operating next-generation data centers across North America. The solutions offered by the firm tailored to suit the rapidly growing HPC(High Performance Computing) industry. Applied Digital was formerly known as Applied Blockchain Inc and since its rebranding, it offers next-generation data centers for HPC applications that can offer lower costs and high compute power solutions as compared to the traditional data centers. Traditional data centers come with expensive costs and do not have the capability of offering the power density required to handle AI(Artificial Intelligence) and ML(Machine Learning) workload.
Recently, Applied Digital had announced that it had secured $50 million in a debt financing round. The firm has reached an agreement for a loan with a maximum principal of $50 million. The firm intends to use the proceeds of this financing round to provide additional liquidity to fund the buildout of its AI cloud platform and data centers. It is pertinent to note that the loan 2-year term and a 9% annual interest rate.
Wes Cummings, CEO at Applied Digital, has expressed his excitement in securing this commitment while further noting that this accomplishment will allow the firm to accelerate its growth in HPC digital infrastructure. Mr. Cummings also revealed that the firm’s new Computing AI cloud platform, Sai, has continued to see unprecedented demand from the market. He also described the funding round as a continued endorsement of the strength of the business and at the same time, illustrates the firm’s ability to secure low-cost, non-dilutive financing to fund a portion of its growth capital needs.
Early last week, the firm had announced the launch of AI cloud services that will offer high compute and performance for AI applications. In recent days, the firm has also managed to sign its first major AI customer in an agreement worth up to $180 million over a 2-year period.
Applied Digital is poised to offer lower cost and high performance solutions that will redefine how digital leaders scale HPC. To attain this, the firm boasts of a dedicated and experienced leadership in the fields of power procurement, engineering and construction. The firm also collaborates with local utilities to solve the problem of congestion on the power grid while stimulating the development of more renewable energy. This strategy is enshrined in the firm’s mission and ultimately aimed at providing higher returns on investment for sustainable projects.
