Slide 1: Applied Digital Investor Update June 2024
APPLIED DIGITAL yl! Investor Update June 2024
Slide 2: Disclaimer and Forward-Looking Statements
This presentation has been designed to provide general information about Applied Digital Corporation (“Applied Digital” or the “Company”). Any information contained or referenced herein is suitable only as an introduction to the Company. The information contained in this presentation is for informat
Slide 3: Who We Are
W H O W E A R E Applied Digital (APLD: NASDAQ) is a U.S. based provider of next-generation digital infrastructure, redefining how digital leaders scale high-performance compute (HPC). With dedicated and experienced leadership in the fields of artificial intelligence/machine learning , power procurem
Slide 4: Leadership team
C H A I R M A N & C E O Wes Cummins C F O David Rench C T O Mike Maniscalco C D O Todd Gale C M O Erin Kraxberger C G O Kate Reed •Director of Sales, Red Hat at IBM Corporation (since 2021) •Strategic Partnership Executive, with Watson at IBM (2019 – 2021) •Business Unit Executive, IBM Security Trus
Slide 5: Key Achievements and Company Timeline
Key Achievements • Over 6,000 H100's deployed as clusters across three data center footprints • Building one of the largest AI factories capable of housing one of the world's largest supercomputers (up to 60,000 H100's) • 1.3GW+ in development • 5 HPC co-location agreements under contract with a rob
Slide 6: Business Overview: Offerings and Customers
HPC DATA CENTERS BLOCKCHAIN DATA CENTERS Provide hosting infrastructure through purpose build HPC data centers Rent AI/ML companies access to cloud servers to train and run applications Provide hosting infrastructure (power and maintenance) to blockchain infrastructure companies What We Offer Who Ar
Slide 7: The Rise of AI Adoption: ChatGPT Site Visits
Month Number of Visits Change Over Previous Month (%) November 2022 152.7 million - December 2022 266 million ↑ 74.2% January 2023 616 million ↑ 131.58% February 2023 1 billion ↑ 62.34% March 2023 1.6 billion ↑ 60% April 2023 1.8 billion ↑ 12.5% May 2023 1.8 billion - June 2023 1.6 billion ↓ 12.5% J
Slide 8: The AI Perfect Storm
T H E A I B O O M The AI Perfect Storm LLMs High Speed Networking Massive GPU Compute GPT-3 175 Billion Parameters 499 Billion Tokens 100 Tokens = 75 Words GPT-4 10X GPT-3 Model Name Release Date Parameters GPT-1 2018 117 million GPT-2 2019 1.5 billion GPT-3 2020 175 billion InstructGPT 2022 1.3 bil
Slide 9: AI's Demand for Power
AI’s Demand for Power T H E A I B O O M AI queries require 10x the electricity of traditional Google queries: • Google request: 0.3 watt-hours • ChatGPT request: 2.9 watt-hours To keep up with the rapid adoption and evolving requirements of AI, a significant increase in power consumption is necessar
Slide 10: Understanding AI Data Centers
Understanding AI Data Centers E V O L U T I O N O F D A T A C E N T E R S TRADITIONAL DATA CENTERS NEXT-GEN AI DATA CENTERS • Low IT MW Load • Low-Power Density Design (12-15kW) • Located Near Major Cities • Optimized for High-Speed, Ultra Low Latency • Requires Purpose Built Infrastructure Designed
Slide 11: From Population to Power
From Population to Power E V O L U T I O N O F D A T A C E N T E R S The number of data centers in the U.S. have doubled in three years AI data centers are shifting the paradigm. They are less dependent on being near population centers and consume up to 300% more power compared to traditional data c
Slide 12: Region Overview: Data Center Footprint
Custom Built HPC Data Centers Region Total Power Initial Energization North Dakota, JMS 9MW Energized North Dakota, ELN Up to 600MWs Q1 2025 R E G I O N O V E R V I E W Applied Digital Cloud (3rd Party Colocation Data Centers) Region Total Power Minnesota 1.5MW Utah 12.5MW Nevada 7.5MW Colorado 2.25
Slide 13: Custom Built HPC Data Centers
Custom Built HPC Data Centers
Slide 14: Data Center Solutions
H P C D A T A C E N T E R S Data Center Solutions Applied Digital provides next-generation infrastructure solutions, engineered to bring workloads directly to the point of generation. Our data centers are purpose-built for high power density, optimized performance, and energy efficiency. By leveragi
Slide 15: Ellendale AI Data Center: High-Level Overview
H P C D A T A C E N T E R S Ellendale AI Data Center: High-Level Overview Data Center Block - Building A Typical Building Technical Details • Three story building • 363,00 GSF building • 1st floor – Central Utilities • 2nd & 3rd Floors – Data Halls • 2 Data Halls – 50MW IT Load Each • Peak rack load
Slide 16: Ellendale Construction Progress
H P C D A T A C E N T E R S Ellendale Construction Progress TOP LEVEL EXTERIOR TOP LEVEL
Slide 17: Hyperscalers Look for New Markets
H P C D A T A C E N T E R S Hyperscaler Look for New Markets Record Pace of Demand Growth Constraints are pushing hyperscalers to explore rural markets and outsource builds Resource Availability Supply Chain Constraints Rising and Unstable Pricing Description: The recent AI boom is driving significa
Slide 18: Strategic Advantages in North Dakota
H P C D A T A C E N T E R S Strategic Advantages in North Dakota Capitalizing on First Mover Advantage Ahead of Growing Demand Abundant Energy Low Build and Operational Cost Favorable Climate Economic Incentives First Mover Advantage North Dakota's excess energy supply supports our operational stabi
Slide 19: Applied Digital Cloud GPU as a Service
Applied Digital Cloud GPU as a Service
Slide 20: Applied Digital Cloud
A P P L I E D D I G I T A L C L O U D Applied Digital Cloud, a wholly-owned subsidiary of Applied Digital, offers GPU compute solutions to help customers cost-effectively execute critical AI, ML, rendering, and other HPC workloads. Our infrastructure is purpose-built for high performance at low cost
Slide 21: Applied Digital Cloud Service Overview
A P P L I E D D I G I T A L C L O U D Applied Digital Cloud Service Overview GPU Inventory Applied Digital Cloud owns, maintains, and has access to cutting- edge GPUs Colocation Deployment GPUs are deployed and maintained by in-house supercomputer experts in various third-party locations GPU as a Se
Slide 22: Blockchain Data Center Operation Update
Blockchain Data Center Operation Update
Slide 23: Blockchain Data Center Operation Update
B L O C K C H A I N D A T A C E N T E R S Financial Considerations for Applied Digital Cloud Jamestown, North Dakota Facility 100MWs Ellendale, North Dakota Facility 180MWs Applied Digital operates data centers to provide energized space to blockchain mining customers. The Company has two Blockchain
Slide 24: info@applieddigital.com
info@applieddigital.com