CoreWeave’s $7B Lifeline Buys Time for Applied Digital Amid Growing AI Infrastructure Doubts

Call it fate or poor planning, but mutual pressure is a hell of a dealmaker. On Monday, Applied DigitalAPLD

inked two 15-year lease agreements with CoreWeaveCRWV

in a move that’s expected to bring the company $7B over the contract’s lifespan. The deal has been a lifeline for both businesses, as Applied works through a tough transition into a data center real estate investment trust and CoreWeave pushes ahead with rapid growth despite rising financial pressure.

• The market responded with explosive enthusiasm, driving Applied Digital’s shares up 100% in the past five days while CoreWeave’s shares rose 35% during the same period.
• The partnership comes as CoreWeave raised $2B through junk bonds at a 9.25% interest rate, attracting over $7B in investor orders despite holding a B+ credit rating deep in junk territory.

Big dreams, bigger debts: While Applied Digital celebrates its newfound stability, CoreWeave’s financial picture tells a more complex story. The AI cloud computing enterprise posted a 420% revenue growth in Q1 but warned of “lumpy” revenue patterns while planning huge capital expenditures for 2025. With Microsoft representing over 60% of CoreWeave’s 2024 revenue and the AI infrastructure market showing signs of cooling, this partnership signals both companies are betting heavily on sustained AI demand. The question remains whether CoreWeave can maintain its breakneck growth pace while managing mounting debt obligations — or if Applied Digital just hitched its wagon to a shooting star that’s already beginning to fade.