$7B CoreWeave Mega-Deal Sends Applied Digital (APLD) Stock Soaring 50%, CRWV Follows
Following a multibillion-dollar, long-term deal with cloud company CoreWeave that sent its stock skyrocketing, Applied Digital APLD...
Quick overview
- Applied Digital has secured a multi-billion-dollar, 15-year agreement with CoreWeave, marking a significant strategic pivot into the data center REIT model.
- The deal will provide 250 megawatts of IT load for CoreWeave's AI infrastructure, potentially generating approximately $7 billion in revenue over the lease duration.
- Following the announcement, Applied Digital's stock surged by 50%, reflecting renewed investor confidence after a period of lackluster performance.
- This partnership highlights the growing demand for AI infrastructure and may set a precedent for future collaborations in the industry.
Following a multibillion-dollar, long-term deal with cloud infrastructure company CoreWeave that sent its stock skyrocketing, Applied Digital’s fortunes are drastically changing.
Strategic Pivot: Applied Digital Reinvents Itself Through CoreWeave Deal
Applied Digital (APLD.O), previously grappling with setbacks in the data center hosting space, has made a major strategic pivot with the announcement of two long-term lease agreements with CoreWeave (CRWV), a rapidly growing cloud services firm heavily backed by Nvidia (NVDA). The 15-year contracts, revealed on Monday, signal a bold move by Applied Digital into the data center REIT (real estate investment trust) model—a direction that could redefine the company’s trajectory.
Under the terms of the deal, Applied Digital will provide 250 megawatts of critical IT load to power CoreWeave’s AI and high-performance computing (HPC) infrastructure. The deployment will take place at Applied’s facility in Ellendale, North Dakota. The company anticipates approximately $7 billion in total revenue over the full lease duration, transforming what was once an uncertain future into a promising long-term opportunity.
Wes Cummins, Chairman and CEO of Applied Digital, emphasized that the exponential demand for AI-related infrastructure has opened the door for a timely transformation:
“We believe we’re uniquely positioned to generate substantial returns while serving the rapidly evolving needs of AI and HPC. CoreWeave is the ideal partner as we scale and innovate in sync with the sector.”
Stock Price Reaction: From Gap-Up to Skyrocket
The market responded with enthusiasm. Applied Digital’s stock, which had closed at $6.83 last Friday, opened Monday with a bullish gap at $8.18 and soared to an intraday high of $10.49—a staggering 50% gain in a single session. This rapid ascent marks one of the strongest daily performances for the company in recent years and signals renewed investor confidence following months of lackluster price action.
CoreWeave’s stock also saw a strong uptick. Pre-market trading began 5% higher at $116.45, and the rally continued into the session, opening at $124. That performance builds on a remarkable run in May, where the stock surged over 160% after closing April at $111.50.
CoreWeave’s Meteoric Rise Fuels Industry Optimism
CoreWeave’s own trajectory is fueling broader optimism across the AI infrastructure space. The company recently reported a first-quarter revenue increase of 420% year-over-year—despite a ballooning adjusted net loss that jumped from $23.6 million to $149.6 million. CEO Michael Intrator acknowledged the growing pains but expressed confidence in the company’s strategic direction, highlighting aggressive expansion plans to meet surging demand for AI workloads.
“Demand for our platform remains robust and accelerating,” Intrator stated, pointing to strong momentum backed by industry-leading partners such as Nvidia, OpenAI, and IBM.
The deal with Applied Digital is not just a milestone for both companies—it’s emblematic of a broader wave of capital and infrastructure commitments pouring into the AI sector. CoreWeave’s rapid scale-up strategy and its willingness to lock in long-term capacity underscore how essential high-performance infrastructure has become for companies developing and deploying AI models.
Conclusion: AI Infrastructure Becomes a Game Changer
The partnership between Applied Digital and CoreWeave could be a watershed moment for both firms. For Applied Digital, the move into long-term leasing and REIT-style business models aligns it with the AI-driven future of computing, providing both predictable revenue and strategic relevance. For CoreWeave, the deal ensures it has the physical capacity to keep up with skyrocketing AI demands.
As both firms ride the wave of accelerating AI adoption, this partnership is likely to serve as a template for future infrastructure collaborations in the industry. Investors, meanwhile, will be watching closely to see if Applied Digital’s reinvention proves sustainable—and whether its stock can hold or build upon its recent explosive gains.
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