Applied Digital's Bold Move in the AI Infrastructure Game

Applied Digital, a company that started with cryptocurrency mining, is making big waves in the AI infrastructure world. It's splitting off its cloud computing business into a new company called ChronoScale Corporation. This move is all about focusing on AI workloads and making the most of the booming AI market. The deal is a bit unusual, but it could be great for shareholders. Applied Digital will keep about 97% of the new company, so they're still in control. This split means Applied Digital can focus on building data centers, while ChronoScale handles the cloud computing side. Applied Digital is building huge data centers, especially in North Dakota. The state's low electricity costs and cold climate make it perfect for AI data centers. These centers use a lot of power, so saving on electricity is a big deal.The company has already secured some massive deals. For example, it has a 15-year contract worth about $11 billion with CoreWeave. They're also working with other big names like Nvidia, which has invested in Applied Digital. In the first quarter of this fiscal year, Applied Digital's revenue went up by 84% compared to the same period last year. They're building a lot of new data centers, and they're doing it faster than before. This is good news for the company and its investors. Analysts are bullish on Applied Digital's stock. They think it could go up by 60% from its current price. But remember, investing always comes with risks, so it's important to do your own research.