Applied Digital Just Borrowed Another $2 Billion. Its Biggest Customer Is $21 Billion in Debt.

Applied Digital (NASDAQ: APLD) just added $2.15 billion in new debt at a 6.75% interest rate. That brings total debt to roughly $5 billion, up from just $468 million a little over a year ago. The artificial intelligence (AI)-focused data center operator is betting big on its $16 billion pipeline of contracted lease revenue. But that pipeline has a problem that investors need to understand.Of the $16 billion, $11 billion comes from CoreWeave -- an AI cloud computing company carrying over $21 billion in debt that lost $1.2 billion last year. It's growing revenue fast, but its debt is growing faster. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool