Applied Digital (NASDAQ:APLD) shares surged as much as 15% in pre-market Friday after the Texas-based company said it struck a partnership worth up to $460 million over 36 months with an unnamed customer.
Applied designs, builds, and operates digital infrastructure that is needed for high-end computing applications. Today’s news marks the second customer for its recently launched AI Cloud Service.
“This agreement marks another milestone in APLD’s HPC/AI Infrastructure growth trajectory as we continue to strategically expand our focus on artificial intelligence cloud services in addition to our next-generation datacenters,” said Applied Digital CEO and Chairman, Wes Cummins.
“As the AI industry continues to grow at unprecedented levels, we continue to see extraordinary demand for our new cloud service as a result.”
Last month, the company unveiled its Cloud Services business and the first client, with whom it agreed a contract worth up to $180M over 24 months.
It added that it remains committed to meeting ongoing customer demand by adding capacity with its next-generation datacenters.
Applied Digital shares are up 425% year-to-date through Thursday’s close.