Applied Digital: CoreWeave’s AI Deal Lights a $7 Billion Fuse

Key Points

• Applied Digital secured a substantial long-term revenue stream through its pivotal new partnership in the artificial intelligence infrastructure sector.
• The agreement with a prominent AI cloud provider strongly validates Applied Digital's focused strategy of developing advanced data center solutions.
• This major deal enhances Applied Digital's market credibility and positions it for significant growth within the rapidly expanding AI industry.

Applied Digital Corporation NASDAQ: APLD stock has captured significant market attention this week.

The company's stock price has seen a significant upward movement, surging nearly 50% on June 2, 2025, and continuing to rise in the pre-market hours of June 3, 2025. 

A major new business agreement between Applied Digital and Coreweave NASDAQ: CRWV directly fueled this impressive rally.

This development and new partnership for the company place Applied Digital center stage in the spotlight of the rapidly expanding artificial intelligence (AI) sector.

A Multi-Billion Dollar Lifeline for Applied Digital

The primary catalyst driving Applied Digital's stock surge is a significant, long-term deal with CoreWeave. CoreWeave is a specialized cloud service provider focused on AI and high-performance computing (HPC). It delivers powerful GPU-accelerated computing resources, which are vital for today's demanding AI tasks. CoreWeave has backing from industry heavyweight NVIDIA NASDAQ: NVDA, adding to its credibility.

Here’s what makes this agreement so impactful for Applied Digital:

• Leased Datacenter Capacity: Applied Digital will lease 250 megawatts (MW) of power capacity to CoreWeave. This will take place at Applied Digital's datacenter campus in Ellendale, North Dakota.
• Long-Term Commitment: The partnership is built on two lease agreements. Each of these leases will last for approximately 15 years. Such a long duration provides a stable and predictable outlook.
• Massive Revenue Projection: Applied Digital expects this deal to bring in about $7 billion in total revenue over the 15-year lease terms. This is a transformative figure for Applied Digital. It represents a substantial future income stream, particularly when compared to the company's past revenues or its market capitalization prior to this announcement.
• Room for More Growth: The deal also gives CoreWeave an option to use an additional 150 MW of capacity at the Ellendale site. This opens the door for even more revenue for Applied Digital in the future.

For investors, this agreement means Applied Digital has secured a major source of future income. The partnership is with a solid player in the AI sector, signaling positive prospects for long-term financial health and growth.

Investors Cheer Applied Digital’s AI Breakthrough

The stock market reacted swiftly and positively to the CoreWeave news. On June 2, 2025, Applied Digital's stock closed at $10.14 per share, an increase of $3.31, or an impressive 48.46%, in just one day.

A considerable increase in trading activity backed this price jump. Around 238.54 million shares of the stock were traded that day, far above its usual average trading volume of about 32.49 million shares. 

Additionally, there were reports of unusually high activity in Applied Digital’s options market, especially for call options. Call options give traders the right to buy a stock at a set price by a certain date. A significant increase in people buying call options often indicates that many traders believe the stock price will continue to rise.

This overall market response suggests that investors view the CoreWeave deal as crucial to Applied Digital’s future.

How CoreWeave Fits Applied Digital’s Master Plan

This major agreement with CoreWeave does more than just bring in potential revenue. It strongly supports Applied Digital's broader business strategy. The company, formerly known as Applied Blockchain, Inc., has been deliberately shifting its focus.

It is now focusing on developing advanced data centers designed for the unique needs of AI and HPC.

The Ellendale, North Dakota campus is a key part of this AI-focused strategy. Applied Digital is building this facility to offer large amounts of power and specialized infrastructure, like advanced cooling, that modern AI hardware demands. Securing a major tenant like CoreWeave for a significant portion of this campus demonstrates that Applied Digital can attract top-tier clients in the competitive AI field.

This development is occurring as global demand for AI-specific data center space is booming. This demand is driven by fast progress in machine learning, large language models, and other AI fields. Applied Digital is positioning itself in a rapidly growing market by preparing to meet this demand.

The CoreWeave deal boosts Applied Digital's credibility and signals to investors that its strategic bet on AI infrastructure is gaining traction.

The multi-billion-dollar agreement with CoreWeave is a landmark event for Applied Digital.

The strong positive reaction from the stock market shows that investors see this as a significant improvement in the company's prospects and its role in the rapidly growing AI industry.

While turning this major contract into lasting profits will require careful execution and navigating a competitive market, the deal undoubtedly launches Applied Digital into a promising new phase with much clearer long-term revenue potential.