Applied Digital stock rose another 9% in premarket trading. Applied Digital’s recent surge has caught the market’s attention. As of Wednesday, the stock has jumped 94% this week. Here are some of the key factors driving the rally.

Applied Digital, a developer of digital infrastructure for high-performance computing (HPC) applications, has signed two approximately 15-year lease agreements with AI cloud-computing startup CoreWeave this week.

Under the agreements, Applied Digital will provide 250MW of critical IT load to support CoreWeave’s AI and HPC infrastructure at its Ellendale, North Dakota data centre campus.

The company expects to generate approximately $7bn in total revenue over the lease terms.

Meanwhile, Both Applied Digital and CoreWeave are backed by Nvidia, the most valuable company in the world and the chipmaking giant most associated with the rise of artificial intelligence. Nvidia held roughly 7.7 million shares of Applied Digital and 24.2 million shares of CoreWeave as of March 31, according to a regulatory filing.

Additionally, after-hours on Wednesday, CoreWeave has disclosed in a 13G filing that it hold a 5.5% or a 13.06M share stake in the company.