Applied Digital Secures Contract with AI Customer, Together AI
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The strategic partnership between Applied Digital Corporation and Together AI signifies a substantial financial commitment, as evidenced by the $18 million prepayment from a $75 million contract. This capital inflow for Applied Digital not only strengthens its cash position but also showcases the company's ability to secure sizable contracts within the high-growth AI and HPC markets. The financial implications for Applied Digital are multi-tiered, with immediate revenue recognition from the prepayment and sustained income over the duration of the contract. Investors should note the potential for increased earnings stability and growth prospects for Applied Digital, given the expanding HPC market, which is expected to reach $65.12 billion by 2030.
Moreover, the partnership may serve as a catalyst for future deals, enhancing Applied Digital's market presence and possibly leading to upward revisions in revenue forecasts. However, investors should also consider the associated risks such as dependency on a few large contracts, potential challenges in scaling operations and the need for continuous investment in cutting-edge technology to maintain competitiveness in this rapidly evolving sector.
The collaboration between Applied Digital and Together AI is a strategic move within the AI and HPC sectors, which are experiencing significant growth due to increased demand for computational power and AI capabilities. Applied Digital's decision to provide a robust infrastructure featuring H100 GPUs and NVLink technology places it at the forefront of companies offering specialized computing environments tailored for AI applications. This infrastructure is likely to attract similar AI-focused companies seeking high-performance solutions, positioning Applied Digital as a go-to provider in this niche market.
From a market perspective, the partnership could enhance Applied Digital's brand recognition and solidify its reputation as an innovator in digital infrastructure for AI. For Together AI, access to Applied Digital's advanced computing ecosystem could accelerate its research and development efforts, potentially leading to breakthroughs in AI that could disrupt various industries. This symbiotic relationship underscores the importance of strategic partnerships in driving technological advancements and market growth.
Applied Digital's infrastructure, designed for HPC applications, is a critical enabler for AI companies like Together AI that require significant computational resources. The use of H100 GPUs and high-speed InfiniBand fabric, complemented by NVIDIA's NVLink technology, underscores the technical prowess of Applied Digital's offerings. These components are essential for handling the vast amounts of data and complex computations needed for training and deploying generative AI models, which are becoming increasingly central to AI innovation.
The technical collaboration between Applied Digital and Together AI could lead to enhanced AI model performance and efficiency, potentially setting new industry benchmarks. The aggregated bandwidth of 3.2 Tbps and the optimized Rail Design for GPU communication are indicative of the high standards required for AI computations. As AI continues to evolve, the demand for such high-performance computing infrastructure is likely to increase, benefiting companies that have invested early in this technology.
• Together AI will utilize Applied Digital's dynamic computing ecosystem, featuring H100 GPUs and NVLink technology.
• Applied Digital's robust infrastructure aligns with Together AI's commitment to innovation, seeking to meet the surging demands of AI and HPC markets.
DALLAS, March 14, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (“HPC”) applications, today announced the onboarding of another AI customer, Together AI. Applied Digital received a contract prepayment of
Together AI is a research-driven artificial intelligence company contributing to leading open-source research, models, and datasets to advance the frontier of AI. The company’s decentralized cloud services empower developers and researchers at organizations of all sizes to train, fine-tune, and deploy generative AI models.
Together AI will be running on Applied Digital's dynamic computing ecosystem, custom-built to meet the rigors of AI's demanding tasks and data-rich optimizations. The structure boasts H100 GPUs and is seamlessly interconnected via high-speed InfiniBand fabric, delivering an aggregated bandwidth of 3.2 Tbps. The communication between the GPUs will be enhanced by NVIDIA's NVLink technology, adhering to an optimized Rail Design.
“Our partnership with Together AI highlights the effectiveness of our cloud service in propelling forward-thinking AI ventures towards scalability,” said Applied Digital CEO and Chairman Wes Cummins. “This onboarding reaffirms Applied Digital's overarching mission to empower pioneering AI innovators through our comprehensive service offerings.”
“Applied Digital’s robust computing infrastructure and next-generation datacenter design, specifically tailored for demanding AI tasks, align with our commitment to innovation,” said Vipul Ved Prakash, CEO of Together AI. “This collaboration allows us to provide scalable capacity to our thousands of startup and enterprise customers who are building new AI models and applications on our platform.”
With the surging power requirements of AI, the HPC markets are experiencing exponential growth, projected to reach a global revenue of
To learn more about the Applied Digital and Together AI partnership, please read our recent blog post titled "Together AI and Applied Digital — Advancing the frontiers of AI"
About Applied Digital
Applied Digital (Nasdaq: APLD) designs, develops, and operates next-generation data centers across North America to provide digital infrastructure solutions to the rapidly growing HPC industry. Find more information at www.applieddigital.com. Follow us on Twitter at @APLDdigital.
About Together AI
Together AI is the leading cloud platform for open-source and independently developed AI systems. Together AI rapidly brings the latest innovations from research to production, enabling the highest performance and efficiency. Find more information at together.ai. Follow us on Twitter at @togethercompute.
Forward-Looking Statements
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FAQ
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