Applied Digital Stock Surges 12% After Announcing Its Third AI Deal

Applied Digital will be deploying HPE's Cray XD supercomputers in its AI cloud service.

AccessTimeIconJun 30, 2023 at 7:16 p.m. UTC
Updated Jun 30, 2023 at 7:47 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Shares of Applied Digital Corporation (APLD), a Texas bitcoin mining and data center firm, surged 12% on Friday, as the firm announced its third deal in the field of artificial intelligence (AI).

Under the partnership, Applied Digital's AI cloud service will use supercomputers designed by Hewlett Packard Enterprises (HEP) and built using NVIDIA H100 graphics processing units (GPUs), according to a Friday press release.

The HPE Cray XD supercomputers will "enhance" Applied Digital's AI Cloud service and "efficiently support critical workloads such as AI, machine learning, rendering, and HPC [high-performance computing] tasks involving digital modeling and simulation," the press release said.

Applied Digital has so far announced two hosting deals for AI loads that could bring in as much as $640 million in revenues over the next 36 months.

Bitcoin miners are increasingly looking into AI to shore up their revenues, which have been hurt by a slump in bitcoin prices and increased network difficulty. Earlier today, Canada's HIve Blockchain (HIVE) detailed a strategy to train enterprise large language models with its GPU fleet.

"This partnership comes at a pivotal time for our company as we continue to expand our current capacity pipeline of up to 200MW [megawatts] for our HPC data centers," said Applied Digital CEO Wes Cummins in the press release.

Applied Digital has developed a 9 MW facility in Jamestown, N.D., custom-built for GPUs. It plans to increase its capacity for high-performance computing hosting to 200 MW.

On June 20, HPE announced its supercomputing-as-a-service offering, which allows customers to access supercomputing on the cloud, without building the infrastructure, to train and operate large language models. It is one of the last companies standing in the supercomputing arena according to industry publication HPC Wire, along with tech giants like Google, IBM (IBM), Intel (INTC) and Nvidia (NVDA).

CORRECTION (June 30, 2023, 19:47 UTC): Corrects potential revenue figure to $640 million.

Edited by James Rubin.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.