Latest news with #Neocloud
Yahoo
7 days ago
- Business
- Yahoo
Applied Digital Taps $7 Billion in CoreWeave Leases
Applied Digital (NASDAQ:APLD) surged 42% after striking two 15-year lease agreements with CoreWeave (NASDAQ:CRWV) worth approximately $7 billion in total revenue. Under the deal, Applied will deliver 250 MW of IT power to CoreWeave's Ellendale, North Dakota, AI and HPC data center, with an option to add another 150 MW. The first 100 MW facility is slated for late 2025, the next 150 MW by mid-2026, and a third 150 MW building could launch in 2027part of Ellendale's planned 1 GW capacity. Warning! GuruFocus has detected 8 Warning Signs with APLD. As Applied transitions toward a data-center-focused REIT, CEO Wes Cummins says these long-term leases cement its role as a foundational infrastructure provider for Neocloud innovators like CoreWeave, which rents Nvidia (NVDA)-powered GPU clusters. CoreWeave's stock also climbed nearly 5% on the news. Investors should care because the 15-year, multi-gigawatt lease stream provides Applied Digital with predictable, high-visibility cash flows and validates its pivot to large-scale AI data centers just as demand for GPU-backed cloud services soars. With Ellendale's first building breaking ground next year, markets will watch Applied Digital's progress on that 100 MW deployment and any additional 150 MW commitments that could push Ellendale toward its 1 GW target. This article first appeared on GuruFocus.
Yahoo
02-06-2025
- Business
- Yahoo
Applied Digital Taps $7 Billion in CoreWeave Leases
Applied Digital (NASDAQ:APLD) surged 42% after striking two 15-year lease agreements with CoreWeave (NASDAQ:CRWV) worth approximately $7 billion in total revenue. Under the deal, Applied will deliver 250 MW of IT power to CoreWeave's Ellendale, North Dakota, AI and HPC data center, with an option to add another 150 MW. The first 100 MW facility is slated for late 2025, the next 150 MW by mid-2026, and a third 150 MW building could launch in 2027part of Ellendale's planned 1 GW capacity. Warning! GuruFocus has detected 8 Warning Signs with APLD. As Applied transitions toward a data-center-focused REIT, CEO Wes Cummins says these long-term leases cement its role as a foundational infrastructure provider for Neocloud innovators like CoreWeave, which rents Nvidia (NVDA)-powered GPU clusters. CoreWeave's stock also climbed nearly 5% on the news. Investors should care because the 15-year, multi-gigawatt lease stream provides Applied Digital with predictable, high-visibility cash flows and validates its pivot to large-scale AI data centers just as demand for GPU-backed cloud services soars. With Ellendale's first building breaking ground next year, markets will watch Applied Digital's progress on that 100 MW deployment and any additional 150 MW commitments that could push Ellendale toward its 1 GW target. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Applied Digital Taps $7 Billion in CoreWeave Leases
Applied Digital (NASDAQ:APLD) surged 42% after striking two 15-year lease agreements with CoreWeave (NASDAQ:CRWV) worth approximately $7 billion in total revenue. Under the deal, Applied will deliver 250 MW of IT power to CoreWeave's Ellendale, North Dakota, AI and HPC data center, with an option to add another 150 MW. The first 100 MW facility is slated for late 2025, the next 150 MW by mid-2026, and a third 150 MW building could launch in 2027part of Ellendale's planned 1 GW capacity. Warning! GuruFocus has detected 8 Warning Signs with APLD. As Applied transitions toward a data-center-focused REIT, CEO Wes Cummins says these long-term leases cement its role as a foundational infrastructure provider for Neocloud innovators like CoreWeave, which rents Nvidia (NVDA)-powered GPU clusters. CoreWeave's stock also climbed nearly 5% on the news. Investors should care because the 15-year, multi-gigawatt lease stream provides Applied Digital with predictable, high-visibility cash flows and validates its pivot to large-scale AI data centers just as demand for GPU-backed cloud services soars. With Ellendale's first building breaking ground next year, markets will watch Applied Digital's progress on that 100 MW deployment and any additional 150 MW commitments that could push Ellendale toward its 1 GW target. This article first appeared on GuruFocus.
India Gazette
05-05-2025
- Business
- India Gazette
Global AI spending to increase by 60% in 2025; share of Microsoft, Amazon, Alphabet & Meta to decrease: UBS
New Delhi [India], May 5 (ANI): Global artificial intelligence (AI) spending is projected to rise significantly in the coming years, with UBS estimating a 60 per cent year-on-year increase in 2025, to USD 360 billion. The momentum is expected to continue in 2026, with a further 33 per cent rise to USD 480 billion. However, the share of spending attributed to the Big 4 tech giants -- Microsoft, Amazon, Alphabet, and Meta -- is anticipated to decline, falling from 58 per cent in 2025 to 52 per cent in 2026. The report said 'we expect global AI spend to increase by 60 per cent y/y in 2025 to reach USD 360bn and 33 per cent in 2026 to reach USD expect the combined share of these companies as a percentage of AI spend to rise from less than 20 per cent in 2023 to more than 40 per cent in 2025'. It also highlighted that this broadening of AI spending across a more diverse set of players is a healthy development for the overall AI theme. A reduced concentration of investment among a few companies could eventually lead to less volatility in the market, the report said. Spending outside the Big 4 is expected to reach a robust USD 150 billion in 2025. A significant portion of this is projected to come from China, which is likely to account for 35 per cent of the total spend outside the Big 4. According to UBS, the rise in China's AI investments is being driven by the success of low-cost models such as DeepSeek, strong government support, and the growing use of AI in consumer-facing applications like e-commerce, social media, and advertising. The report mentioned that the Neocloud providers--companies offering specialized AI-integrated cloud services--are also emerging as a key segment, expected to capture around 25 per cent of the non-Big 4 AI spending in 2025. The remaining spend is likely to come from other hyperscalers and enterprise or sovereign cloud providers, including players such as Oracle and Softbank. While UBS advises investors to continue monitoring guidance from the Big 4, the report emphasizes that other AI-focused companies are now accelerating their investments and are crucial to the ongoing resilience of the sector. (ANI)
Time of India
05-05-2025
- Business
- Time of India
Global AI spend to rise 60% in 2025 even as Microsoft, Amazon, Alphabet, Meta share drops: UBS
Live Events Global artificial intelligence AI ) spending is projected to rise significantly in the coming years, with UBS estimating a 60% year-on-year increase in 2025, to $360 momentum is expected to continue in 2026, with a further 33% rise to $480 the share of spending attributed to the Big 4 tech giants — Microsoft Alphabet , and Meta — is anticipated to decline, falling from 58% in 2025 to 52% in report said "we expect global AI spend to increase by 60% y/y in 2025 to reach $360 billion and 33% in 2026 to reach $480 billion... We expect the combined share of these companies as a percentage of AI spend to rise from less than 20% in 2023 to more than 40% in 2025".It also highlighted that this broadening of AI spending across a more diverse set of players is a healthy development for the overall AI theme. A reduced concentration of investment among a few companies could eventually lead to less volatility in the market, the report outside the Big 4 is expected to reach a robust $150 billion in 2025. A significant portion of this is projected to come from China , which is likely to account for 35% of the total spend outside the Big to UBS, the rise in China's AI investments is being driven by the success of low-cost models such as DeepSeek, strong government support, and the growing use of AI in consumer-facing applications like e-commerce, social media, and report mentioned that the Neocloud providers — companies offering specialized AI-integrated cloud services — are also emerging as a key segment, expected to capture around 25% of the non-Big 4 AI spending in remaining spend is likely to come from other hyperscalers and enterprise or sovereign cloud providers, including players such as Oracle and UBS advises investors to continue monitoring guidance from the Big 4, the report emphasises that other AI-focused companies are now accelerating their investments and are crucial to the ongoing resilience of the sector.
