Nvidia Contributes to $160 Million Applied Digital Funding Round

Data center operator Applied Digital is the latest company benefiting from investors’ artificial intelligence appetites.

The firm raised $160 million in a financing round that included backers like AI chip giant Nvidia, The Wall Street Journal reported Thursday (Sept. 5).

Applied Digital builds and leases out space in its data center to other companies, according to the report. It also launched an AI cloud-computing operation powered by Nvidia’s chips.

“We have been doing a lot with Nvidia, and I think we’re unique in that we have both the cloud aspect and the data center build-out,” CEO Wes Cummins said, per the report. “I think both are important to them.”

The company will use the new funding to fuel its growth and help shore up debt-financing deals for a data center effort in North Dakota, the report said. It also plans to expand its cloud-computing business.

Other companies in the space — such as AI cloud-computing firm CoreWeave — have also seen their valuations rise after investments from Nvidia, per the report.

Earlier this week, Tokyo-based AI company Sakana AI raised over $100 million and partnered with Nvidia, an investor in the funding round.

In other AI news, PYMNTS examined how generative AI has emerged as a major driver of innovation in automobile development and design.

“The technology allows engineers to quickly explore numerous design variations, optimizing everything from vehicle aesthetics to performance attributes,” the report said. “This shift is supported by compelling industry data.”

The PYMNTS Intelligence report “How Generative AI Is Boosting Innovation for Carmakers and Drivers” found that 93% of auto industry stakeholders said generative AI will have a significant impact on their field, while 75% plan to integrate it into their operations this year.

The generative AI market in the auto sector is expected to balloon from $335 million in 2023 to $2.6 billion by 2033, representing a compound annual growth rate of 23%.

“This anticipated growth underscores a commitment to the technology among research and development departments, with nearly 70% of decision-makers prioritizing its adoption,” PYMNTS wrote.

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