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Macquarie Group just made a power move in the AI game, pledging up to $5 billion to turbocharge data centers for Applied Digital (NASDAQ:APLD), according to The Wall Street Journal. First up, $900 million is going into a high-tech campus in North Dakota, with an additional $4.1 billion on standby for future expansion. And here's the kicker: Macquarie grabs a 15% stake in Applied Digital's high-performance computing business, leaving the AI player with the remaining 85%. Investors loved itits shares rocketed over 32% in premarket trading today.
This deal isn't just about numbers; it's a lifeline. Applied Digital will wipe out debt and reclaim over $300 million from its North Dakota project. CEO Wes Cummins sees this as a game-changer, calling it a critical step in funding their massive, power-hungry data centers. Originally a crypto-mining outfit, Applied Digital pivoted hard into AI, and it's paying off big time. The stock is up 25% in the past six months, fueled by the unstoppable AI wave and a booming demand for computing horsepower.
Macquarie's move is more than just a single investment; it's a trendsetter. As giants like Nvidia (NASDAQ:NVDA) dominate headlines, players like Macquarie and Blackstone are cashing in by building the AI ecosystemthink data centers, chip-leasing, and infrastructure. This isn't Macquarie's first rodeo either; they've backed AI projects before, solidifying their spot as a go-to player in the industry's next big chapter. Bottom line? The AI gold rush is far from over, and Macquarie's latest bet proves it's all about owning the tools that power the revolution.
This article first appeared on GuruFocus.