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Leading Provider of Next-Gen Datacenters for High-Performance Computing Applications October 2023 Technical Overview
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DISCLAIMER This presentation has been designed to provide general information about Applied Digital Corporation (“APLD” 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 informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Neither the Company or any of its affiliates make any representation or warranty, express or implied as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any of the information or opinions contained in this presentation. This presentation has been prepared without taking into account the investment objectives, financial situation particular needs of any particular person. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and solutions of Applied Digital. Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance and business. When used in this presentation, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements include all statements that are not historical facts. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith beliefs and assumptions as of that time with respect to future events. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Forward-looking statements may include statements about the Company’s future financial performance, including the Company’s expectations regarding net revenue, operating expenses, and its ability to achieve and maintain future profitability; the Company’s business plan and ability to effectively manage growth; anticipated trends, growth rates, and challenges in the Company’s business, the cryptoeconomy, and in the markets in which the Company operates; further development and market acceptance of cryptoasset networks and other cryptoassets; further development of the Company’s co-hosting facilities including for crypto, AI, machine learning and HPC and cloud computing offerings, and the customer base for each such service; beliefs and objectives for future operations; the value of Bitcoin, Ether and other cryptoassets, which may be subject to pricing risk has historically been subject to wide swings; the Company’s expectations concerning relationships with third parties; the effects of increased competition in the Company’s markets and the Company’s ability to compete effectively; the Company’s ability to stay in compliance with laws and regulations that currently apply or become applicable to its business both in the United States and internationally; economic and industry trends, projected growth, or trend analysis; trends in revenue, cost of revenue, and gross margin; trends in operating expenses, including technology and development expenses, sales and marketing expenses, and general and administrative expenses, and expectations regarding these expenses as a percentage of revenue; increased expenses associated with being a public company; and other statements regarding the Company’s future operations, financial condition, and prospects and business strategies. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Applied Digital undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Market and Industry Data This presentation includes information concerning economic conditions, the Company’s industry, the Company’s markets and the Company’s competitive position that is based on a variety of sources, including information from independent industry analysts and publications, as well as Applied Digital’s own estimates and research. Applied Digital estimates are derived from publicly available information released by third party sources, as well as data from its internal research, and are based on such data and the Company’s knowledge of its industry, which the Company believes to be reasonable. Any independent industry publications used in this presentation were not prepared on the Company’s behalf. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. The Company has not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. An investment in the Company entails a high degree of risk and no assurance can be given that the Company’s objective will be achieved or that investors will receive a return on their investment. Recipients of this presentation should make their own investigations and evaluations of any information referenced herein. This presentation is available on Applied Digital Corporation’s website at www.applieddigital.com/news-events/presentations. 2
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Michael Maniscalco CTO • Serial entrepreneur with multiple startups and exits, and prior experience with StanleyX and Fortune 1000 companies. • Over 20 years of diverse experience in IT, IoT, financial, telecommunications, AI, and healthcare industries. • Holds a degree in Computer Science from the Georgia Institute of Technology. Introduction
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A I E x p l o s i o n AI Race To Dominance Generative AI Foundational Models Exponential Innovation General Artificial Intelligence World-Changing Implications In A World Where Innovation Races Against Time
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Super Compute Resources Large Models Drive Demand For Supercomputer Level GPU Clusters AI Explosion The ChatGPT Effect. Digital Infrastructure Where Innovation Can Flourish Physical Space & Power AI Clusters Hungry For Power, Specialized Space, And Efficient Cooling A I I n n o v a t o r s N e e d P o w e r , S p a c e , a n d C o m p u t e
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Power & Scale D E L I V E R I N G O N T H E I M P O S S I B L E • Supercomputer Scale Clusters • Power Hungry GPU Clusters • Cooling For AI Level Compute Network T R A I N I N G , I N F E R E N C E , A N D I N F I N I B A N D • Delivering Large Cohesive Ultra- low Latency Networks • Tailoring Network To AI Workload Requirements • Enabling Speed And Flexibility AI Compute G P U S U P E R C O M P U T E & I N F E R E N C E • World-class Supercompute For Generative AI And LLM Training • Alleviating The Complexities That Come With Supercomputer Scale A t A p p l i e d D i g i t a l - W e D o n ’ t F e a r C o m p l e x i t y We Build Bridges Where There Have Been Only Gaps
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We offer a wide range of digital infrastructure and services for compute intensive applications ACCELERATED COMPUTE-AS-A-SERVICE1 Providing Graphics Processing Unit (GPU) Cloud Services Applicable to Artificial Intelligence SUPERCOMPUTE-AS-A-SERVICE2 Providing Supercomputer Scale Clusters As A Turnkey Service Offering NEXT-GEN HPC DATACENTERS3 Providing Power-Efficient HPC Datacenters and Cost-Effective Colocation Services W E A R E T H E A R C H I T E C T S O F A C C E L E R A T I O N IN A WORLD WHERE SPEED TO MARKET MATTERS
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APLD HGX H100 SuperPod Applied Digital’s team delivers supercomputer clusters designed using Nvidia’s HGX reference architecture that offer cutting-edge compute, storage, and networking TURNING STATE-OF-THE-ART SUPERCOMPUTERS INTO CATAPULTS OF TRANSFORMATION APLD Compute Clusters are deployed in Nvidia SuperPod configurations ranging from 256 – 5,000+ Nvidia H100 SXM GPUs
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We Turn Pipes And Air Into Threads Of Opportunity Internet Pipes Considerations • Training • Inference • Time to deployment Local Network Fabric • Ultra-low latency • State of the art architectures • Workload flexibility Fact: An APLD 5,000 H100 GPU cluster consists of 250km of fiber interconnecting all GPUs for a total of 15k+ InfiniBand cables Applied Digital H100 SXM Cluster With InfiniBand
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Power – The Primary Ingredient Of Innovation Created with MidJourney AI /imagine a large data center campus with multiple mulit-story data center buildings in a rural location near a wind turbine farm Power Needs For AI Compute Increasing • An ”AI Brain In A Building” require compute density. • For the largest clusters we provide high-density compute racks (100kw/rack +) • State-of-the-art cooling: Beyond air cooling constraints at ~60kw/rack with liquid cooling • Power at the source: For cost-effective, rapid development and ESG optimized compute • Rethinking data center SLAs for rapid and cost- effective deployment • Delivering Datacenter campuses eyeing gigawatt scale
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Power & Scale D E L I V E R I N G O N T H E I M P O S S I B L E • Supercomputer Scale Clusters • Power Hungry GPU Clusters • Cooling For AI Level Compute Network T R A I N I N G , I N F E R E N C E , A N D I N F I N I B A N D • Delivering Large Cohesive Ultra- Low Latency Networks • Tailoring Network To AI Workload Requirements • Enabling Speed And Flexibility AI Compute G P U S U P E R C O M P U T E & I N F E R E N C E • World-class Supercompute For Generative AI And LLM Training • Alleviating The Complexities That Come With Supercomputer Scale A t A p p l i e d D i g i t a l - W e D o n ’ t F e a r C o m p l e x i t y We Build Bridges Where There Have Been Only Gaps
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Leading Provider of Next-Gen Datacenters for High-Performance Computing Applications THANK YOU
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In a world where speed to market matters. We are the architects of acceleration. Applied Digital doesn’t just build data centers. We construct forces of progress, and design digital infrastructure where innovation can flourish Whether it’s high-performance computing or world-changing AI. This is where ideas transcend and the limit on what’s possible expands. We are for empowered visionaries. First-mover innovators and digital dreamers. We don’t fear complexity. We build bridges where there have been only gaps. More than designers of infrastructure, we are catalysts for the digital age. We turn pipes and air into threads of opportunity… State-of-the-art supercomputers into catapults of transformation. Power – isn’t just a tool – it’s the primary ingredient of innovation. And in a world where innovation races against time, we supply the fuel for possibility. Applied Digital Manifesto