In a stunning turn of events, Applied Digital's shares skyrocketed nearly 48% on Monday following the announcement of two monumental lease agreements with CoreWeave, a major player in the artificial intelligence landscape.

With backing from tech titan Nvidia, CoreWeave's stock also saw a significant uptick, rising by about 8% in response to this groundbreaking deal.

Hold onto your hats! These long-term agreements are projected to generate around $7 billion in rental revenue over the next 15 years. What's more, lease payments are secured upfront and come with annual escalators, ensuring steady income regardless of project fluctuations.

Wes Cummins, CEO of Applied Digital, expressed excitement over the partnerships, stating they are pivotal in the company's strategic initiative to enhance advanced computing infrastructure.

CoreWeave is set to unleash cutting-edge AI and high-performance computing technologies at Applied Digital's upcoming data center campus in Ellendale, North Dakota.

This ambitious campus will provide a staggering 250 megawatts of essential IT load and is designed to expand to a colossal 400 megawatts.

The agreements include two data cell blocks: one with a capacity of 100 MW and another at 150 MW, with CoreWeave having the option to expand with a third block of the same size.

For context, CoreWeave's stock had hit a peak of $130.76 on May 29, before starting at $39 just two months earlier. The excitement around these agreements reflects growing confidence in AI ventures and digital infrastructure.