June 4, 2025

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Applied Digital, xAI Funding, and AI Investments

Recent developments in the AI sector highlight significant investments and strategic partnerships. Applied Digital's stock experienced substantial gains following a $7 billion, 15-year deal with CoreWeave to host AI infrastructure in North Dakota. This deal involves providing 250 megawatts of computing power and positions Applied Digital as a key player in AI infrastructure. Similarly, Elon Musk's xAI is seeking $5 billion through a debt sale and $300 million via employee share sales to fund AI projects, including the Grok chatbot and Colossus supercomputer, valuing the company at $113 billion after merging with X Corp. Institutional investment in AI is also on the rise, with the Kuwait Investment Authority joining Microsoft, BlackRock, and MGX in a $30 billion AI infrastructure partnership. Investment tools like Zacks Thematic Screens are helping investors identify top AI stocks, such as Broadcom, which reported a 77% increase in AI revenue. Upstart, an AI-driven credit platform, is also receiving positive analyst ratings due to its innovative approach and significant revenue growth. Lemonade, an AI-native insurer, is aiming to disrupt the insurance industry and expects to reach breakeven by 2026. Overall, AI startups continue to attract strong venture capital investments, while companies like Nvidia are benefiting from increased AI hype and strategic deals. However, not all AI stocks are performing well, as C3.ai's stock price declined after executives sold shares, and the company reported increased net losses.

Key Takeaways

  • Applied Digital's stock jumped after securing a $7 billion AI infrastructure deal with CoreWeave.
  • CoreWeave will lease 250 megawatts of power capacity from Applied Digital in North Dakota.
  • Elon Musk's xAI is raising $5 billion to invest in AI infrastructure and projects.
  • xAI's valuation stands at $113 billion after merging with X Corp.
  • The Kuwait Investment Authority is investing in Microsoft's $30 billion AI venture.
  • Broadcom's AI revenue increased by 77%, driven by high demand for its AI products.
  • Analysts are bullish on Upstart, an AI stock using machine learning for credit platforms.
  • Lemonade, an AI-native insurer, aims to disrupt the insurance industry and expects to reach breakeven by 2026.
  • Private AI investments increased significantly between 2023 and 2024.
  • C3.ai's stock price declined after executives sold shares, with the company reporting increased net losses.

Applied Digital stock jumps on $7B AI deal with CoreWeave

Applied Digital's stock value increased after making a 15-year deal with CoreWeave to host AI infrastructure. The deal is expected to bring in $7 billion for Applied Digital. Both companies are supported by Nvidia, a major chip maker. CoreWeave uses data centers with Nvidia chips to help clients develop AI models, making this a big move for Applied Digital.

Applied Digital stock soars nearly 50% after AI deal

Applied Digital's stock rose almost 50% after signing a deal with CoreWeave for AI cloud services. The 15-year agreement involves 250 megawatts of computing power at Applied Digital's North Dakota location. This deal could generate about $7 billion in revenue, averaging $467 million each year. The first facility is expected to be ready in late 2025, with another following in mid-2026. This partnership could make Applied Digital a key player in AI infrastructure.

Applied Digital stock jumps 50% after AI partnership deal

Applied Digital's stock price increased significantly after announcing two 15-year lease deals with CoreWeave. These deals will bring in $7 billion in revenue for Applied Digital. CoreWeave will get 250 megawatts of data center capacity from Applied Digital in North Dakota, with an option for more. This deal is a big win for Applied Digital as it becomes a data center real estate investment trust.

Applied Digital stock rises with CoreWeave's $7 billion AI deal

Applied Digital's stock jumped nearly 50% due to a major deal with CoreWeave, an AI cloud service provider. Applied Digital will lease 250 megawatts of power capacity to CoreWeave at its North Dakota data center. The 15-year agreement is expected to generate $7 billion in revenue for Applied Digital. CoreWeave also has the option to expand its capacity, potentially increasing revenue further. Investors are reacting positively, seeing this deal as crucial for Applied Digital's future in the AI sector.

Elon Musk's xAI seeks $5B to boost AI infrastructure

Elon Musk's AI startup, xAI, is planning to raise $5 billion through a debt sale to invest in data centers. Morgan Stanley is managing the deal. Musk is also considering selling $300 million of xAI shares to employees. This follows xAI's merger with X Corp, valuing the combined company at $113 billion. The funds will support xAI's AI projects, including the development of the Grok chatbot and a supercomputer called Colossus.

xAI launches $5B debt sale and $300M share sale

Elon Musk's xAI has launched a $5 billion debt sale managed by Morgan Stanley. The company is also selling $300 million in shares to its employees. The share sale values xAI at $113 billion, the same as when it acquired X. xAI plans to use the funds for general business purposes. Musk has stated that xAI and X's futures are connected, combining AI with social media.

Kuwait fund invests in Microsoft's $30B AI venture

The Kuwait Investment Authority is joining a $30 billion AI infrastructure project backed by Microsoft. This project aims to invest in AI infrastructure around the world. Kuwait wants to take advantage of the growing AI industry. Microsoft, MGX from Abu Dhabi, and BlackRock added xAI and Nvidia to the project in March.

Kuwait joins Microsoft, BlackRock, MGX in AI partnership

The Kuwait Investment Authority is joining the AI Infrastructure Partnership. This group was created by MGX, BlackRock, and Microsoft in 2024. KIA is the first financial partner that is not a founder of the group.

Find top AI stocks with this investing tool

Zacks Thematic Screens helps investors find companies in growing industries like AI. The tool highlights companies involved in AI, from software and hardware creators to those using AI for automation. One top-ranked stock identified is Broadcom AVGO. Broadcom is expanding its AI technology and reported a 77% increase in AI revenue, driven by strong demand for its AI solutions.

Find top AI stocks with this investing tool

Zacks Thematic Screens helps investors discover companies in growing fields like AI. The tool shows companies involved in AI, from software and hardware developers to those using AI for different tasks. Broadcom AVGO is a top-ranked stock that was identified. Broadcom is growing its AI technology and reported a 77% increase in AI revenue. This growth is due to high demand for its AI products.

Analysts bullish on Upstart AI stock

Analysts are positive about Upstart, an AI stock using machine learning for a new credit platform. Upstart's platform is more accurate than traditional credit scores. The company's transaction volume increased by 102% and revenue jumped 67% to $213 million. Several Wall Street analysts have given Upstart a buy rating, with an average price target of $65.33. Upstart is also expanding into auto and home loans, showing potential for future growth.

Lemonade stock poised to disrupt $3 trillion insurance industry

Lemonade, an AI-native insurer, aims to change the insurance industry by using AI instead of agents. The company uses bots to manage onboarding, claims, and pricing. Lemonade's shares have dropped since 2021, but recent progress shows a potential turnaround. In the first quarter of 2025, Lemonade's in-force premium topped $1 billion. The company expects to reach breakeven on earnings by 2026.

AI startups remain hot investment picks

Private AI investments increased by 44.5% between 2023 and 2024. Corporate investments in AI also saw a 25.5% increase in 2024 compared to 2023. About 58% of global venture capital investments in the first quarter of 2025 went to AI startups. This shows that investments in AI are still strong despite economic challenges.

C3.ai stock crashes after executives sell shares

C3.ai's stock price dropped after company executives sold a significant number of their shares. The stock price fell by 6.09% on Monday. Investors reacted negatively to the sell-offs, especially because no specific reason was given. In the fourth quarter of fiscal year 2025, C3.ai's net loss increased by 9% to $79.7 million.

Nvidia stock soars as AI hype returns

Nvidia's stock has risen sharply due to factors like the rollback of AI diffusion rules and a major deal with Humain in Saudi Arabia. The stock has climbed 20% in the last month and 45% since April. Nvidia's first-quarter results were strong, calming investors' concerns about business disruptions in China. Major tech companies are also continuing to invest heavily in AI, benefiting Nvidia.

Sources

AI Artificial Intelligence Stock Market Investments Data Centers Infrastructure Nvidia Applied Digital CoreWeave xAI Elon Musk Microsoft Kuwait Investment Authority Broadcom Upstart Lemonade C3.ai Venture Capital AI Startups Machine Learning Cloud Services Debt Sale Share Sale AI Infrastructure Partnership Zacks Thematic Screens AI Stocks Financial Analysis Revenue Earnings AI Models Grok Chatbot Colossus Supercomputer AI Cloud AI Technology AI Solutions AI Revenue AI Platform AI-Native Insurer AI Diffusion Rules Humain Saudi Arabia